The pair started at $1.3369 this morning in Asia, following a $1.3340 to $1.3370 range during the US hours overnight. It initially held between $1.3367 and $1.3370 before slipping to $1.3365, as euro-yen also weakened after the Japanese GDP data. The cross continued to weaken after Japanese stocks opened lower, dragging euro-dollar down with it to a low of $1.3360. Euro-dollar again tracked a mild recovery in euro-yen later in the morning as Japanese stocks ended the early half of the day with modest gains. Euro-dollar climbed back to $1.3365 amid talk of sovereign bids from $1.3330providing support, down to a $1.3325 barrier, with stops also mixed in. There’s also talk of large option expiries at the $1.3350/40 region, which are also likely to help contain further downmoves. Euro-dollar was last at $1.3365.
