Edging higher again as traders adjust positions ahead of the key morning focus ECB LTRO, the take up results due at 10:15 GMT. Rate currently trades around $1.3148, just off earlier extended highs at $1.31584. Initial reaction expected to be judged on the size of the take up, a large take up expected to boost risk and vice versa, though if seen too big could prompt some analysts to ajudge that market could be over exposed to EZ debt. Offers seen between $1.3165/75 ahead of $1.3200 with stronger interest noted behind at $1.3210/15 ($1.3213 Oct 25 low). One major NY bank has suggested that they see room for rate to push up to $1.3225/50 into year end but keep their underlying negative outlook for the new year.
EasyForexNews Research Team