Opened at $1.3130 in Asia having bounced strongly from NY lows of $1.2974 as talk that the ECB would swap its Greek bonds holdings for newly issued ones, prompted the start of renewed speculation that the Greek bailout deal would be signed on Monday. The pair rallied sharply, aided by strong US jobless claims and some aggressive EUR/JPY buying as risk appetite built quickly. Stops were taken out through $1.3120 to highs of $1.3159 before easing back into the close. This morning’s Asian session has been quiet with the pair trading a modest $1.3122-46 range with most action seen in the crosses. There is talk now of sovereign selling interest just above the NY highs of $1.3159 and further offers layered up to $1.3200. Strong bids start from $1.3100 down towards $1.3180. There’s not too much on the data calendar today to excite ahead of the US President’s day holiday on Monday, as the main focus is on any last minute hiccups ahead of Monday’s critical Eurogroup meeting.
EasyForexNews Research Team