The pair closed in NY Thursday at $1.3662 after rate had consolidated its post FOMC taper corrective pullback below $1.3700, with rate held within an intraday range of $1.3650/95. While rate held below the $1.3700/30 area the recent underlying heavy tone remained in place with rate soon under fresh pressure into Asia as it backed away from its early posted high of $1.3668. Asian sovereign supply was reported in the initial corrective pull back, though traders linked the heavier sales to euro-yen, as rate eased through $1.3650 and tripped stops on the move below $1.3640. Rate met demand at $1.3632 which cushioned the initial break but recovery efforts remained below $1.3650.Into the Asian afternoon and rate came under another round of sell pressure as rate extended losses to $1.3626. Traders in recent sessions have noted demand in place between $1.3625/15 ($1.3614 38.2% $1.3295-1.3811), with talk of stronger interest positioned into $1.3600. Offers now seen into broken support at $1.3650, more between $1.3690/1.3700. Asian traders have noted macro demand interest into $1.3600, the parties seen short ahead of $1.3700 on the back of long euro calls.
