The pair closed Monday’s session at $1.3563 after rate had pulled back from an earlier high of $1.3598 with the dollar gaining a boost on comments out of the US suggesting the two sides the in US debt ceiling impasse were close to a deal. This optimism continued into early Asia, the markets here remaining thin due to holidays though Tokyo has returned, with euro-dollar easing from an early high of $1.3568 to a deeper correction low of $1.3550 before it met decent demand. The recovery was aided by a strong recovery in the Aussie dollar, as it reacted to the release of RBA Minutes (no cut soon), edging to a high of $1.3569 ahead of Europe. French CPI at 0645GMT and Germany ZEW at 0900GMT provide the Eurozone data interest this morning, with US Empire Manufacturing at 1230GMT provides some insight into the US while data has been held up in this region due to the partial government shutdown during the debtceiling negotiations. Overshadowing the data will be the potential for any comment on those mentioned debt talks. Euro-dollar bids remain at $1.3550, with further interest seen to $1.3540. A break to open a deeper move toward $1.3525/15. Resistance remains into $1.3600/10.
