Into European trading and dealers expected the Dollar to struggle, with many looking for the unit to witness a down-day. Early European trading saw the near expectation German & French data do little to boost the Euro but with the Dollar on the defensive the pair managed to base the late Asian pullback into 1.2530/35.
EUR positive M&A speculation and the potential for a US/EZ rate spread rebound helped spot work higher and stops were triggered above 1.2660. Smaller intraday positions were removed in the 60's but the larger orders into the 1.2570's were also triggered as the topside stayed in focus. Central bank supply helped limit the topside and no test of 1.2580 was seen (1.2577 the high). Bids are noted into 1.2550 while stops sit below 1.2520.
Into North American trading and the higher levels should attract more aggressive players and with official supply and option related supply (linked to the 1.2600 option barriers) seen into 1.2580 the topside is expected to find the going tough. Yet with 1.2500 and below equally well defended a rough 1.2480/2580 range could begin to be formed.
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