Into European trading and the late Asian failure to break below 1.3590 left the topside in view. Spot broke back into the 1.36's but offers into 1.3610 once more looked to cap. However, with the Dollar forced onto the back-foot by USD/CHF sales this standing supply was soon absorbed. Stops above 1.3610 popped and 1.3619 printed before fund sales emerged to limit the move higher.
The price consolidated for a period but more offers were noted trailing to 1.3625 to keep the stops above 1.3630 in play and as a result the pair has since worked inside a 1.3600/20 band. As expected EZ data failed to bolster support for the Euro while stops are seen building below 1.3580. Above option barriers at 1.3590 & 1.3600 will continue to be protected.
Looking ahead, US Employment data due tomorrow may be eyed by many but into NorAm trading and the USD still needs to navigate the preliminary Q1 productivity data and the April Non-Manf. ISM release. Weekly jobless data is also set for release with the Q1 data at 12:30 GMT while economists look for the 14:00 GMT ISM data to rise to 53.0 from 52.4.
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