Opened early Europe at $1.3086, EUR/USD closed in NY at $1.3157, with rate marked lower into early Asian trade as weekend failure to get an agreement from the governing Greek parties to the necessary reforms weighed on risk. Rate squeezed lower into the Asian session, finding support around $1.3080, with failure to edge back above $1.3100 leaving the rate open to another downside push, probing under Friday’s post FOMC at $1.3066 to $1.30562. Rate recovered in early Europe, picking up demand from macros, leveraged accounts and middle eastern names. However, stiff resistance between $1.3095/00 capped the initial challenge, with a second wave challenge by a noisy US investment bank also thwarted in this area. Rate reversed, a Belgian name a noted seller from above $1.3080 with rate able to grind its way to an eventual low of $1.3030 as stops were triggered through $1.3050-40. Corporate demand based the move, with the downside stall prompting some covering back which took rate back above $1.3050. Offers seen placed at $1.3060/65 with stops above.
EasyForexNews Research Team