The pair closed in NY Thursday at $1.3220. The rate earlier pressed to session lows of $1.3161 after release of strong Philly Fed data, finding support ahead of the 21 dma. Dip demand bounced and the euro recovered on strong support in the crosses, extending back through $1.3200 to $1.3239. Sentiment soon turned and with sharp declines in equities, aided by a report in the FT that the IMF was about to halt payments to Greece, the pair reversed to $1.3194, later bouncing into the close. Dollar sales in early Asia lifted euro-dollar to $1.3246 as traders anticipated a weak Nikkei opening after sharp equity falls in the US yesterday. Momentum soon turned and a bounce in Dollar-yen with demand from Japanese banks pared gains, briefly making a show under $1.3200. The pair saw an immediate bounce to settle in a tight $1.3210/20 range, before fresh demand emerged taking the rate to extended highs of $1.3254. Traders reported a technical fund sold into the rally and with dollar support across the board as stocks turned positive, rate drifted to $1.3230 ahead of Europe. Asian bids are reported on the downside through $1.3180/50, stops behind on a break of $1.3140. Offers seen into $1.3255, with more stops set.
