Closed in NY at $1.2957, after rate had extended 2013 lows to $1.2924, recovering to $1.2971 before drifting off into the close. A fairly quiet start into Asian trading with early dealing confined to a tight $1.2955/65 range. Rate broke up to $1.2982 as it took direction from Aussie dollar’s positive react to stronger than expected Australian jobs data, but momentum quickly faded and allowed it to drift back to the $1.2960 area. Further selling then pressed rate to session lows of $1.2943 before recovering back toward the $1.2960 area again ahead of the European open. A fairly light data calendar through the European morning, EZ employment at 1000GMT with interest to be set on SNB and Norges Bank policy decisions (both expected to keep rates unchanged) as well as Spain bond auctions at 0930GMT. Traders note the EU Summit begins in Brussels today and could prompt some headline risk. Offers remain at $1.2980/85 ahead of $1.2995/1.3000, with stops building from $1.3005 through to $1.3020. Support $1.2945/35, a break to expose Wednesday’s low at $1.2924. Asian traders report demand from $1.2920 to $1.2890, covering the reported barrier at $1.2900. Further demand then seen into $1.2880 the 200-dma lurking behind at $1.2868.
EasyForexNews Research Team