EUR/USD closed in NY at $1.2864, having extended Wednesday’s rally through European highs of $1.2847 to $1.28655 during the afternoon session as talk swirled suggesting a Greek deal could be in place by Friday. Risk appetite remained in place into early Asia, allowing rate to push on to $1.2880. Rate reversed off highs as short term specs were left disappointed following the failure to trip stops above this level, the corrective pullback given added weight by the release of weaker than expected NZ CPI, followed by weak Australian jobs numbers, which took it to lows of $1.2842. Rate was recovering off lows into Europe before meeting sharp sell interest into $1.2870, the rate dropping back to $1.2840 before running into semi official demand. Leveraged buying emerged to take rate back to $1.2880, the break triggering stops to take it on to $1.2893. Asian sovereign supply eased rate to $1.2865 before second wave of buying lifted it on to $1.2908. Late morning buys edge rate on to $1.2916, taking out fresh Asian sovereign supply.
EasyForexNews Research Team