Closed in NY Thursday at $1.3752 after rate corrected back from an early intraday high of $1.3803 to $1.3737, the move given added weight by the release of strong US retail sales data. Rate pressed to an early low of $1.3745 into Asian trade before correcting back to $1.3760 where it met decent resistance. Rate sold back to extended session lows of $1.3742 into the Asian afternoon as dollar-yen was driven higher (Y103.92). Rate was trading around $1.3750 into Europe. Underlying positive trend into year end appears to remain in place, though this took a slight profit take bruising Thursday, with rate vulnerable to a deeper correction before we could see a stronger recovery takeplace. Traders have signalled that the $1.3725/00 area would be preferred to enter fresh longs. Several ECB speakers on the wires today could provide influence though taper/FOMC positioning to overshadow into the afternoon, with end year flows remaining a key element in the background. Euro-dollar bids $1.3737-34, more from $1.3725 through to $1.3700. Resistance $1.3760, $1.3780 (61.8% $1.3803-1.3737) ahead of $1.3790/1.3805. Stronger offers $1.3820 with stops on break of $1.3825.
