The pair closed in NY Tuesday at $1.2909, having pulled back from recovery highs of $1.2934 (off intraday lows of $1.2841), the high seen as market reacted to less than hawkish comments from Fed Bullard and Dudley ahead of today’s Bernanke testimony and FOMC Minutes. Rate recovered off opening $1.2905 lows in Asia, the rate able to push through the NY high and on to $1.2939 with US names the stand out sellers from above $1.2930. Main demand was seen via crosses with decent buying seen for euro-Aussie and euro-yen. Move failed to trigger reported stops above $1.2940, the reversal prompting short term specs to cover and take rate back to $1.2914. BOJ kept policy unchanged with market now awaiting Kuroda’s press conference at 3.30pm JST to see if he mentions anything about JGB yields, which was missing from the overnight statement. A light EZ and US data calendar with key event being Fed Bernanke Testimony at 1400GMT, overshadowing later FOMC Minutes. Offers remain into $1.2940 with stops above, but further offers then seen from $1.2950 through to $1.3000, with stops also mixed in to $1.2970. Further stops noted $1.3005. Demand seen into $1.2900, stronger at $1.2850/40 and between $1.2820/00.
