Closed in NY at $1.2931, after rate had bounced aggressively off initial Draghi react lows of $1.2745 to $1.2949, before consolidating this recovery into the close. Also of note, the rate closed back above its 200-dma, which yesterday was at $1.2892, today at $1.2894. All focus overnight in Asia was on yen, with trade in euro-dollar through Asia contained within a tight range of $1.2920/38, opening Europe around $1.2925. Offers remain in place into $1.2950, more toward $1.2965 with talk of stops placed above. Support remains at $1.2920, with stronger interest noted at $1.2900 (23.6% $1.2745-1.2949). EZ retail sales due for release at 0900GMT and Germany factory orders at 1000GMT and could provide some morning interest but this will be overshadowed by this afternoon’s US employment report. Headline watchers will also be on the lookout for any comments concerning the ECB discussions ahead of yesterday’s rate decision/Draghi press conference to gauge interest rate outlook.
EasyForexNews Research Team