Closed in NY at $1.3028 after rate had been pressured to session highs of $1.3074 during the NY session, easing to $1.3015 before edging higher into the close. Slow trade into Asia with rate easing off to post session lows at $1.3023 before picking up some demand interest which took it to an eventual high of $1.3044 ($1.3045 50% $1.3074-15) ahead of the European open. Rate currently trades around $1.3038 at writing. Recent higher lows seems to be placing an underlying bid tone back in place, with thoughts at the beginning of the week looking for a break under $1.2950 seen diminishing. Offers now seen in place between $1.3070/80, a break to open a move toward $1.3100. A break here to allow for a move toward $1.3125/35. Support remains at $1.3025/15, the area covering the Asia low at $1.3023 and the NY pullback lows at $1.3015. French and Spanish inflation data due up at 0745GMT and 0800GMT respectively with EZ IP at 1000GMT, though more interest to be shown for the Italian bond auction at 1000GMT, results 1010GMT.
EasyForexNews Research Team