Euro-dollar closed in NY at $1.3160, having seen recovery highs in this session of $1.32187, from earlier European lows of $1.3026, as risk was given a boost by release of generally firmer PMI data. Rate edged higher into early Asia, taking its lead from AUD as it rallied through barriers at $1.0750 on strong trade data. EUR/USD pushed to a high of $1.3197 before faltering, traders noting decent supply greeting the move, regional names the stand out sellers. Rate settled back between $1.3175/95 through Asian mid session before dropping to $1.3160, recovering to $1.3185 ahead of the European open. Semi official sales in early Europe, joined by major Asian sovereign supply, pressed rate lower with break of $1.3140 adding further weight from triggered stops before rate met the semi official at $1.3125, which along with US name demand ahead of $1.3120, cushioned the dip at $1.3122. Late morning comments from China’s Wen considering greater involvement in EFSF and ESM funding provided a later spike to $1.3190, but held below Asian highs.
EasyForexNews Research Team