Closed in NY Friday at $1.3005 after rate had been shoved down to lows of $1.2955 on reaction to the strong NFP data, recovered. Rate recovered to $1.3017 before drifting off again into the close. Rate consolidated Friday’s volatile reaction in Asia, early trade was contained within a range of $1.2985/1.3005 before it dipped to $1.2980 ahead of the Tokyo open then edged slightly higher on euro-yen demand to trade within $1.2995/1.3010 through the Asian afternoon. Offers seen placed between $1.3020/30 with stops above, but if triggered expected to meet stronger sell interest placed toward $1.3050. Demand remains at $1.2985/80 with corporate demand interest noted at $1.2950 and at $1.2930. Germany trade data due at 0700GMT followed by France IP at 0745GMT the highlight data of the day with a fairly light calendar in the US. US retail sales and CPI due this week (Wednesday/Friday respectively); Eurozone IP Wednesday, employment Thursday and EZ CPI Friday. SNB and Norges bank rate decisions due Thursday. For today expect some adjustments to be seen in the crosses after Friday’s mainly dollar driven moves.
EasyForexNews Research Team