Opened early Europe at $1.3125 EUR/USD closed in NY at $1.3107, having corrected from a low of $1.2931 to $1.3121 as markets reacted to the dovish FOMC comments. With
Australia and India closed for holidays, and China for the week, it made for a very thin Asian market to ponder last night’s events. EUR/USD consolidated the react rally, with trade overnight contained within a range of $1.3090/1.3127, though underlying tone remained buoyant into early Europe. Fresh demand into Europe challenged the 55-dma at $1.3132, touching $1.3134 before slipping back. Real money and leveraged sales kept rate pinned back toward $1.3100, but demand remained evident. Greek press report suggesting private investors would agree to a lower coupon of Greek debt provided the catalyst to take rate through $1.3150 and on to $1.3174 ($1.3172 23.6% $1.4939/1.2626) before meeting stiff resistance in the area between $1.3175/80. Rate settled back, supported by middle eastern demand at $1.3145/40, countered by the reported offers at $1.3175/80. Barrier interest noted at $1.3200, more offers ahead.
EasyForexNews Research Team