The pair started this morning’s session at $1.2546, after a $1.2505 to $1.2577 range during the US hours last night. Some players pointed to reports that “EU central bankers to challenge Draghi on leadership style” as part of the reason for the move higher in euro-dollar last night but much of that had faded by this morning with euro players content to again sit back and wait for the ECB meeting this Thursday. Euro-dollar traded up to $1.2559 in early dealings and then pulled back to $1.2547 soon after. The pair rebounded again as euro-yen also rallied off its lows, with euro-dollar this time hitting a $1.2566 high. It continued to pull back while still marking higher lows through the morning while caution remained before Thursday’s ECB meeting. Traders are unlikely to do a great deal ahead of the ECB press conference although with the market remaining short it is likely that covering of these positions would be seen heading into the announcement. Euro-dollar was last at $1.2555, with bids reported down near the $1.2535/25 option expiries keeping the pair supported while sellers are noted above the overnight $1.2577 high, from $1.2590 through $1.2600/10.
