The pair closed in NY Thursday at $1.2285 after rate extended lows in NY to $1.2266 with the dollar given an added lift on the back of higher UST yields with US data also seen generally supportive. Rate extended its late NY recovery into Asia with early demand taking the rate to session highs of $1.2292. Good demand for dollar-yen into dips saw euro-dollar drift off to $1.2275, corrected to $1.2288 before it turned lower again, marking Asia session lows at $1.2274. Demand ahead of the European open has edged rate back to $1.2285. Traders very aware of large option expiries for today, the highlight one being at $1.2300 with almost E10bn rolling off at today’s 1000ET NY cut. Germany PPI data at 0700GMT provides an early focus though little reaction expected. Bids remain at and below $1.2265, stronger into the 2014 low at $1.2247(Dec8), with the key technical 200-month M/A close behind at $1.2230. Resistance $1.2300, stronger into $1.2340/50.
