The weaker than expected US NFP data released overnight and the subsequent sharp fall in US 10yr yields propelled the euro to a high of $1.3792 last night in the US, the highest level traded since the $1.3871 Nov monthly high from 2011. It opened in Asia this morning around $1.3781 and although found support off $1.3776, was reluctant to make any sort of meaningful rally. It broke to $1.3783 as it followed aussie-dollar up after the CPI data, but was again initially capped ahead of last night’s $1.3792 high, following up with pullbacks toward $1.3780. In the late morning, however euro-dollar was boostedby the continued dollar weakness and it then managed to re-visit the New York high before tunring back again. The pair fell back toward $1.3776 lows and was last at $1.3778. Initial support is noted on the hourly time frame at $1.3770, ahead of the previous 2013 high of $1.3711, and then the $1.3704 Oct. 18 high, but a close below the $1.3648 level is needed to shift the overall focus lower.
