Closed in NY at $1.2814, after the rate performed an impressive recovery from pullback lows of $1.2715 to $1.2846 on market reaction to ECB Draghi press conference comments, following the no change in interest rates announcement/reference to signs of stability. European corporate demand seen in early Asia provided the early lift to $1.2824, with traders noting again that regional demand was active (like Thursday). Asian traders linked the afternoon push up to $1.2879 on reaction to a Les Echos story that a Greek debt accord may be reached by end of next week, adding that a Greek debt restructuring agreement is close. Stops were triggered on the move through the key $1.2858 level (2011 low) which took rate to mentioned highs. Offers are seen placed into $1.2880, with one trader reporting further interest every 5-10 pips higher, another highlighting the $1.2900/10 area, adding that they see the $1.2945 level as next interesting level. Support now seen back toward $1.2850, more at $1.2825/20. Long weekend in the US could prompt more short covering into the afternoon.
EasyForexNews Research Team