FX Update: EUR-USD Finds Support As Dollar Slips
FX Action: EUR-USD traded on a supportive footing after it benefited from a softer dollar tone. The dollar headed lower after sharp Wall Street losses, with financial sector concerns coming back to the fore. EUR-USD traded as high as 1.4805 in Asia before turning lower. The pair found early European support at 1.4740, but an Asian central bank, which intervened in its local currency overnight is reportedly selling on strength.
A limited data schedule out of the eurozone should see attention turn back to equities and energy prices for a directional guide. Higher crude prices lent support in Asia, but the overall tone remains a sell on rallies and this is unlikely to change in the near-term unless there is a signficant shift in the fundamental picture. Stop losses lie above the market at 1.4805/10, while offers are noted ahead at 1.4780 and 1.4800. Bid interest is noted at 1.4700 and 1.4670-80.