The pair closed in NY Monday at $1.3760 after rate had seen intraday highs of $1.3800, following the release of stronger than forecast Eurozone PMI data, with rate then easing back to $1.3743 in NY on general dollar strength, led by higher US yields. Rate recovered to $1.3768 ahead of the close, the rate drifting off into Asia. Rate consolidated around $1.3760 in early Asian dealing before dipping down to $1.3752, the move reacting to the pullback in the Aussie following the release of RBA Minutes which showed a mild easing bias. However, buyers were quick to emerge and taker advantage of the dip with rate recovering to $1.3772 into Europe, early dealing extending the recovery to $1.3774 at writing. A positive Nikkei was seen supporting euro-yen, in turn providing buoyancy for euro-dollar. Offers seen placed between $1.3770/80, a break to open a move back toward Monday’s high at $1.3800. Support remains at $1.3745/40, with Asian traders noting decent demand placed between $1.3740/30. Germany ZEW at aqt 1000GMT provides the morning interest, with US inflation data at 1330GMT. However, Wednesday’s FOMC seen overshadowing. Merkel expected to be sworn in as Chancellor today.
