EUR/USD opened at $1.2961 in Asia after a bounce in the NY session from a year’s low of $1.2858. Weak demand in yesterday’s Italian auctions led a sell-off in thin market conditions, but the move proved unsustainable with short covering leading to a late rally and the EURO closing higher on the day. Asian markets pushed the pair up to
$1.2968 before easing back with equities this morning to $1.2937. GBP recovered from 12 week lows of $1.5362 to close at $1.5416 but remained in a tight $1.5401-20 range in Asia with EUR/GBP little better trading through stg0.8395-8411. USD/JPY continued to slide painfully slowly easing from Y77.74 to Y77.52, dragging EUR/JPY with it from Y100.69 to
Y100.32 after a failure to break the psychological Y100.00 level in NY. AUD continued to show resilience along with the EURO after Asian sovereign buys towards yesterday’s lows; opening in Asia at $1.0137 and after a brief dip to $1.0127,bouncing into the Tokyo fix to $1.0176 before easing back with stocks to $1.0140. Year-end trading is now very
thin with any direction likely to be order driven.
EasyForexNews Research Team