The pair closed in NY Tuesday at $1.2927 having touched an extended low of $1.2912 late session before edging back into the close. This recovery continued into Asia, the rate edging on to $1.2941 before stalling as hedge fund supply countered the early move and eased rate back to $1.2921. Rate recovered to settle between $1.2930/40 through to the European open. Focus this morning will be on EZ GDP data releases, France numbers due at 0530GMT followed by Germany at 0600GMT and EZ at 0900GMT. Asian traders report Chinese demand in place below $1.2920, stronger between $1.2910/00, and suggested to be linked to barrier protection ahead of $1.2900. A break below to expose next support into $1.2880. Resistance $1.2950-75.
