The pair started in Asia this morning at $1.3605, just at the high traded during the US hours last night. That also turned out to be the best level the pair could reach in Asia this morning as risk appetite faded. Euro-dollar drifted steadily lower through the morning, also taking its cue from a softer euro-yen tone. Euro-dollar paused briefly at $1.3596 around mid-morning, taking back a few points but resumed heading south soon after. It traded a late morning low of $1.3593 and again crept back a few notches to last trade at $1.3594, in an overall unremarkable Asia-Pacific session so far. Ahead, a close above$1.3677 would confirm a break of the 200-day moving average ($1.3671) for euro-dollar and hint at a sustained move higher, although the 100-day ($1.3737) then becomes the first hurdle to be overcome. While the $1.3669-77 region caps bears will continue to target retests of the $1.3500-15 region that has supported on dips throughout June. All eyes will be on the German Ifo Business Climate Index scheduled for release in Europelater today.
