EUR/USD closed NY Friday at $1.2935 with rate getting marked down into the Asian open to $1.2902 as markets showed their disappointment that no deal had been settled on Greek debt. Stops through $1.2880/60 were taken out in thin Asian trade, several centres closed for the Chinese new year celebrations, taking it to lows of $1.2854. Rate recovered to $1.29088, only to fall back to $1.2880 before edging back above $1.2900 into early Europe. Headwind sales above $1.29 saw rate dip back, but a mix of Asian sovereign and macro demand initially cushioned the move before eventually taking rate back above the figure and on to close the $1.2935/02 NY close/Asia open gap, aided by middle eastern buys. Rate touched an early high of $1.2943 before slipping back to $1.2910 as range players sold back into the rally. Rate recovered through the balance of the morning, getting an added lift German MP comments suggesting ESM and EFSF could run in tandem, which took rate above $1.2951 (NY recovery high), holding just off $1.3000 ahead of NY.
EasyForexNews Research Team