Closed in NY at $1.3106 after rate had been pressured to extended recovery highs of $1.3119 as ECB Draghi failed to provide any dovish signals for a rate cut. This recovery had pushed up from late Wednesday NY lows of $1.2965. Rate consolidated this rally in early Asia, trade contained within a range of $1.3102/16, until it got pressed back to $1.3087, settling then below $1.3100 ahead of the European open. Euro-trade was basically sidelined with more interest seen in yen pairs as the Japanese currency continued to lose ground, the rise in euro-yen seen in tandem with dollar-yen and having little knock on effect into euro-dollar. Traders have reported offers in place between $1.3120/25, placing stops above the 100-dma, which today comes in at $1.3128, with main stop interest seen on a break of $1.3130. However, should this level give way stronger offers seen in place into $1.3150. Support seen back at $1.3080, more into $1.3055/50. US employment report at 1330GMT the key release on the day, the recent strong ADP report prompting hopes for a strong number. Ahead of this German IP due at 1100GMT, which after Thursday’s weak German factory orders data, expected to come in with a weak reading.
EasyForexNews Research Team