Opened in Asia at $1.2961 after a late rally in NY having posted a fresh 2011 low of $1.2858. An early rally lead by some cross demand took the pair up to $1.2968 before equity markets pared gains and the single currency settled back around $1.2940. Trading volumes are dramatically reduced into the year end but the general tone remains bearish with dealers still apparently intent on testing the EUR/JPY Y100 level, despite some Asian sovereign bids apparently lying in wait down towards $1.2850. There is little on the data calendar today and markets are expected to thin rapidly from around midday in Europe with any large order flows dominating direction.
EasyForexNews Research Team