The pair closed in NY Thursday at $1.3037 after rate had recovered off session lows of $1.3000 to $1.3057 before drifting off into the close. Rate touched an early low of $1.3031 before fresh demand emerged to extend the recovery. The move up was seen led by euro-yen, with triggered stops on the move through Y128.70, then Y129.10 providing the momentum to lift euro-dollar through its late NY recovery high and onto $1.3075 where it met willing sellers sitting within the area of daily moving averages (100- $1.3069, 200- $1.3074, 55- $1.3078, 50- $1.3079 and 40-dma $1.3080). Move failed to trigger reported stops placed above $1.3080 with rate drifting off toward $1.3060 ahead of the European open. End month, quarter, half year linked flows expected to influence market moves during the day. Early focus on German retail sales data at 0600GMT, with German inflation data (following state releases) expected into early afternoon. The MNI Chicago Report at 1345GMT ahead of UofM at 1355GMT provides the afternoon focus. Offers remain in place between $1.3075/80 with those stops above, a break to expose next resistance between $1.3100/10, more stops above. Support $1.3030, $1.3000 and $1.2985/80.
