Closed in NY at $1.3050 with early demand into Asia able to mark session highs at $1.3058 before rate reversed tack and squeezed lower. Japanese sales of EUR/JPY, despite reports that the fix would see USD/JPY demand, led the move lower but rate met initial support in the area between $1.3047/45 (supported for around 2-hrs). When the US name (Tokyo branch) pulled the bid the rate dropped down to $1.3023. Rate recovered off lows, edging to an initial high of $1.3040 before settling for the balance of the session between $1.3025/40. Rate currently trades around $1.3038 into early Europe. Monday’s risk rally, that saw EUR/USD push up to a high of $1.3077, having seen lows of $1.29115 on the first trading day of the year (Monday, Jan2), was seen losing some of its shine with traders beginning to look toward upcoming events in the Eurozone. German bund auction today, France tomorrow, as well as discussions between Merkel and Sarkozy on the calendar for Jan9 and negative press comments concerning Greece. Bids placed into $1.3020, with more noted between $1.3010/00. Offers $1.3060/80, $1.3100/10.
EasyForexNews Research Team