Opened at $1.3185 after being ground down in NY on downgrade announcements from Fitch and S&P. Asia opened to further rating news from Moody’s that 9 european sovereigns would be adjusted. Euro triggered stops through $1.3180 and $1.3150 on sales from Russian and momentum names despite demand from an Asian sovereign. The move stalled eventually at $1.3145 after meeting some strong demand from a UK clearer and recovered to $1.3175 but remained under pressure ahead of the european open. Rate slipped to $1.3127 in pre-european trade, before lifting to $1.3140 on local order flow. Asian sovereign demand boosted the pair from the offset to $1.3170 as EUR/USD extended the recovery off overnight lows. Rate headed higher on semi-official demand ahead of the German ZEW survey, climbing through $1.32 to $1.3207 on a stronger than expected data release. EUR/USD buoyancy continued posting fresh highs $1.3215, before easing on Asian sales ahead of the NY open.
EasyForexNews Research Team