The pair closed Monday at $1.3122 after rate had recovered off a session low of $1.3059 to $1.3144 before it drifted off into the close. Moves were driven by UST yields prompted by Fed speaker comments, Fisher highlighted as he likened the ‘big money’ players to feral hogs as they tended to test for any weakness (linked to tapering speculation). Rate edged back up to $1.3136, the move aided by euro-yen demand as the Japanese currency was sold after the fix on Nikkei recovery. However, this bounce in Asian equities proved short lived as the Shanghai index began to move lower which saw euro-dollar pressed back down to $1.3111, with rate holding within an outside $1.3110/20 range as we head into Europe. French confidence index, Spanish PPI and Italian retail sales due for release during the morning but none seen as major market movers. US durable goods data at 1230GMT seen as the main focus, followed at 1400GMT by US consumer confidence, with the US data effect on UST yields to drive. Euro-dollar offers from $1.3145 and extending to $1.3175, but buy entry interest mixed in on a break above $1.3160. Support $1.3110/00, with $1.3082 (100-dma), $1.3081 (55-dma) and $1.3074 (200-dma) providing renewed support as rate closed above.
