Closed in NY Thursday at $1.3102 after rate had pulled back following a second rejection from the $1.3138 level, the rate making a brief show under $1.3100 to $1.3096 before edging back into the close. Recovery off that late pullback continued at a slow, steady pace through Asia, the rate touching a high of $1.3126, despite reported euro-yen sales through the session (this cross having been a key directional driver in recent sessions), as the dollar was seen under general pressure, prompted by dollar-yen breaking back under Y99.50. The recovery stalled, with rate dropping back to $1.3109 but buyers quickly emerged into the dip to edge rate back toward $1.3120 ahead of the European open. Offers remain in place at that $1.3138 level, with traders again noting 55-dma and 100-dma levels, which today are at $1.3142 and $1.3151 respectively, as providing another upside hurdle. Support $1.3100, stronger into $1.3085/80. Ecofin in Dublin today will have traders watching for any comment from there, the ministers expected to discuss topics such as the loan extension to Ireland and Portugal, staff level agreement between Troika and Cyprus and Slovenia developments. Periphery CPI data also of note and EZ IP at 0900GMT.
EasyForexNews Research Team