Closed in NY Tuesday at $1.3165 after the euro took advantage of a data weakened dollar to push up to session highs of $1.3186, correcting back to $1.3146 on London fix supply before edging higher into the close. As to be expected, with Wednesday’s May 1 holiday, trade through Asia was described as very quiet, early dealing in euro-dollar holding within a tight $1.3160/70 range before lifting to overnight highs of $1.3179 then settled back between $1.3160/70 into Europe. European markets will also be impacted by the Labour Day holiday. Offers said to remain in place into Tuesday’s $1.3186 high ($1.3185/95), a break here to expose April highs of $1.3202, with the 50% retrace of the year’s $1.3711-1.2745 range coming in at $1.3228. Stops seen on break of $1.3230, which if triggered to open a move on toward $1.3250. Support seen back at $1.3150/40. US employment data/components remain a key driver with this afternoon’s ADP and PMI and ISM releases in focus ahead of tonight’s FOMC and Friday’s NFP. Thursday’s ECB rate decision, with many forecasting a cut of 25bps, remains in the background.
EasyForexNews Research Team