The pair closed in NY Monday at $1.3370. The rate tied to a narrow $1.3328-59 range for the majority of the session, dipped to intraday lows on an article in the FT that claimed Fed Bernanke would say on Wednesday that the FOMC is close to cut its $85 Bln-a-month asset-purchase program. This however weakened the dollar allowing a recovery to $1.3345. With focus clearly still on Wednesday’s events the rate spiked to near 4 month highs of $1.3381, before paring light gains. Euro-dollar consolidated late US gains, opening in Asia around $1.3369 the rate eased on broad dollar strength through the Tokyo fix to $1.3355. As traders reported of light volumes and no real flows rate extended the slow grind to $1.3348 ahead of Europe. Resistance at $1.3390 (Jun 13 high) still seen capping the topside, ahead of barrier interest into $1.3400. Support seen at $1.3318/17 (17 Jun low, former 23.6% of $1.2043-1.3711), a break opens demand on approach to $1.3300. Highlights today include the German ZEW survey, released at 0900GMT today, followed by US CPI at 1230GMT.
