Opened early Europe at $1.2840, EUR/USD closed in NY at $1.2814, after the rate performed an impressive recovery from pullback lows of $1.2715 to $1.2846 on market reaction to ECB Draghi press conference comments, following the no change in interest rates announcement/reference to signs of stability. European corporate demand in early Asia provided lift to $1.2824, with traders noting again regional demand(like Thursday). Asian traders linked the afternoon push up to $1.2879 on reaction to a Les Echos story that a Greek debt accord may be reached by end of next week. Stops were triggered on the move through key $1.2858(2011 low) which took rate to mentioned highs. Rate was holding firm into Europe, but reports of heavy offers at $1.2880 pressed rate lower, with Asian sovereign sales taking it back below $1.2870. Rate drifted lower, touching $1.2812 before a ‘drive by’ inspired bounce took rate back up to $1.2842 ahead of the Italian bond auction results. Weak result prompted heavy selling which took rate down to $1.2776, with recovery efforts holding below $1.2800.
EasyForexNews Research Team