The pair closed in NY Friday at $1.2989 after rate had managed to recover off extended lows of $1.2936. The absence of any aggressive communication out of the weekend G7, they reaffirmed their commitment to refrain from deliberately weaken currencies through monetary policies without making any reference to recent moves in Japan, and along with the release of the much rumoured piece from WSJ Hilsenrath which reported that the FOMC has mapped out a strategy for winding down QE, acted to boost the dollar into Asian trade Monday. Euro-dollar was marked down to $1.2969 at the open, touching an early low of $1.2947 before settling between $1.2960/80 through the balance of the session once Tokyo had opened and acted to quell the early volatility. Support remains at Friday’s low of $1.2935 (61.8% $1.2745-1.3243), a break to open a deeper move toward $1.2900. Resistance $1.2980, more into $1.2995/1.3000.
