The pair closed in NY Friday at $1.3559 after it had managed to recover off lows of $1.3523 to $1.3556. Hopes that the two sides in the US debt ceiling debate were close to resolving the current impasse was seen helping to provide a late, tentative boost to risk positions, ahead of the long US weekend. Rate lifted on to $1.3566 in early, holiday thinned Asian trade (Tokyo and Indonesia closed, Singapore closed Tuesday)before it dipped back to $1.3550 as the main Asian session got started. Rate held between $1.3552/58 during the Asian morning, edging up to settle between $1.3562/66 into the Asian afternoon, trading around $1.3564 into Europe. Resistance remains in place between $1.3575/85 ($1.3585 61.8% $1.3646-1.3486), a break to open a move toward$1.3600. Support seen at $1.3545/40, a break to open a deeper move toward $1.3525/20. Market expectations for a short term deal on the US debt ceiling seen providing risk with some buoyancy, though market will be open to reactions on any comments. Eurozone IP data due at 0900GMT to provide the morning interest, though afternoon trade expected to trail off due to the holidays in the US and Canada.
