Closed in NY at $1.2934 after rate had recovered through the NY session to a high of $1.2979 before drifting off into the close. Rate touched a low of $1.2929 in early Asian trade before buyers emerged to edge the rate to a session high of $1.2955, the move aided by Tokyo euro-yen demand, before it settled around $1.2945 into the European open. More interest was seen in yen and Kiwi overnight with the euro awaiting fresh events to emerge. Asian traders have mentioned that the Cyprus president will come up with a new proposal at 0730GMT to present to government officials, with a possible parliamentary vote this afternoon. No confirmation seen for this so we shall wait and see how this develops. Apart from the headline risk from Cyprus traders will turn focus to EZ flash PMI forecasts for the major economies, beginning with France at 0758GMT. US weekly jobless claims, flash PMI, Phila.Fed and housing data to provide the afternoon data interest. Euro-dollar offers noted at $1.2955/60 (Asia high and 61.8% $1.2979-29) ahead of $1.2980. Further offers seen at $1.2995/00. Support $1.2930/20 ahead of $1.2905/895 with stops placed on a break of $1.2890. New BOJ Governor Kuroda will give his inaugural address at 0900GMT.
EasyForexNews Research Team