Closed in NY Friday at $1.2678, having seen lows of $1.2624 following leaked reports of the later confirmed S&P downgrades, as well as concerns over Greek debt talks. Rate opened into Asia at $1.2647, with pressure on the EUR again emerging as strong sell pressure emerged onto EUR/JPY. This latter rate pressed toward reported option barrier’s at Y97.00, but demand ahead cushioned the move at Y97.04. This move lower took EUR/USD to overnight lows of $1.2626, but again encountered decent demand around the $1.2625 area, one trader noting sizeable demand interest in the area between $1.2620/00, with some linking this to protection of size able barrier interest at $1.2600. Rate recovered, filling any gap left by the NY/Asia close/open, with rate settling between $1.2630/55 ahead of the European open. Rate currently trades around $1.2642. US holiday for Martin Luther King day, as well as a fairly light calendar, should normally make for subdued trading but traders will be wary of any ongoing comment regarding the eurozone, especially Greek debt. Bids $1.2625/00, stops below. Offers $1.2660/65.
EasyForexNews Research Team