Closed in NY Thursday at $1.3056 after it had been pressed to session lows of $1.3053 on the negative close on Wall Street. Rate picked up demand into the Asian open, the initial buying lifting it into an early trade range of $1.3060/70 before Tokyo entered the market and provided stronger bid interest via euro-yen. Rate edged to an initial high of $1.3077, extending the move to $1.3083 during the Asian afternoon. Rate was holding firm ahead of Europe, currently around $1.3078. Asian traders have reported that demand in place at $1.3040 suggested to be linked to the Mar12 $1.3000 strike buyer seen Thursday. Overall traders in Asia described trade during their session as fairly subdued, release of Chine PMI data causing only minor ripples as they were close to expectations. Germany retail sales due up at 0700GMT will provide the early interest, with EZ manufacturing PMI’s to follow from 0813GMT (Spain) through to EZ PMI at 0858GMT. EZ CPI and jobs data at 1000GMT, with LTRO1/2 repayment the next interest at 1100GMT. Bids seen placed into $1.3050, stronger at $1.3040 with stops below, a break to open a deeper move toward $1.3030-00 with Asian sovereign demand in this area noted in recent sessions. Offers $1.3095/00.
EasyForexNews Research Team