Closed in NY at $1.2789 after recent sell off extended to $1.2770. Early trade in Asia was contained within a range of $1.2785/00 (Asia high $1.27993), with short covering by macro names countered by negative news out of Greece as well as model supply. Rate dropped through $1.2770 as market reacted to rumors of an explosion at a N.Korean nuclear facility, the move triggering stops below the NY base that took rate to lows of $1.2763. Denials that the N.Korean reports were false by the S.Korean defense ministry allowed rate to drift higher, opening Europe back above $1.2780, though recovery efforts remain labored. However, market is seen sitting short EUR, vs the USD and in crosses, and could leave rate open to some further short covering ahead of this afternoon’s key jobs data (1330GMT), though market remains wary of any further negative eurozone news. Offers remain to $1.2800, more toward $1.2820 with stops above. A break here to open potential for a push toward $1.2850/65 (2011 low at $1.2858). Support $1.2760/50, $1.2750 holding sizable barrier interest, stops below.
EasyForexNews Research Team