The pair continued to feel the effects of overnight remarks by ECB President Draghi this morning in Asia but losses have been contained as the weekend approaches. Draghi said last night the ECB is comfortable to act next time, but wanted to see staff projections, comments which drove the euro sharply lower to $1.3833 during US hours. Euro-dollar opened at $1.3840 this morning but early dealings were confined to a $1.3835 to $1.3845 range. The pair was dragged further down as euro-yen fell after Japanese stocks opened, touching $1.3831. The move then uncovered demand from $1.3825 and that has since contained the losses, triggering a mild recovery to $1.3841, Euro-dollar was last at $1.3841. Looking ahead, the upside continued to be capped by barrier protection at $1.4000, while on the downside, further losses through the $1.3831 low is likely to then see the pair head for the May 2 low of $1.3812, traded after the USpayrolls data release, while beyond that would see the focus shift lower to last week’s $1.3771 low.
