Closed in NY at $1.3107, having corrected from a low of $1.2931 to $1.3121 as markets reacted to the dovish FOMC comments, the statement pushing out a rate rise into late 2014 (from mid 2013) and leaving the door open to act aggressively (more QE). With Australia and India closed for holidays, and China still out for lunar new year celebrations, it made for a very thin Asian market to ponder last night’s events. Euro-dollar consolidated the reactive rally, with trade overnight contained within a range of $1.3090/1.3127, with the underlying tone remaining buoyant into early Europe as buyers emerge to extend topside to $1.3129 ($1.3127 1.618% swing projection based on pullback Weds from $1.3052 to $1.2931). Offers have been reported between $1.3130/40 ($1.3132 55-dma), a break to open a move on toward $1.3160/65 ahead of $1.3190/1.3200. Support seen back at the Asian low of $1.3090, more toward $1.3070 with stops below. The IIF return to Athens today so market will be on watch for any comment concerning Greek debt talks, as well as Italian bond auctions.
EasyForexNews Research Team