The pair closed in NY Thursday at $1.3046 after rate had again extended its recovery, this time to $1.3062 after breaking, then holding above its key 40-dma and 200-dma levels ($1.3012-29, today at $1.3016-32 respectively) into the close which should keep rate buoyant and open to further gains if this break holds. Release of weaker than expected weekly jobless claims and a slight downside revision in Q1 GDP data prompted another round of dollar selling in the US, with traders noting that most end month models favour dollar sales at today’s fixes. Early demand in Asia edged rate up to a high of $1.3060 but momentum faded on approach to Thursday’s highs before rate slowly drifted lower through the balance of a fairly subdued overnight session to $1.3031 (200-dma $1.3032), holding heavy ahead of the European open. Support seen between $1.3030/20, more between $1.3005/00 with stops below, a break to pen a deeper move toward $1.2988 (61.8% $1.2942-1.3062) ahead of $1.2970 (76.4%). German retail sales at 0600GMT provides the early interest followed by EZ inflation and employment data at 0900GMT. US PCE at 1230GMT is followed by the Chicago Report at 1345GMT and UofM at 1355GMT.
