EUR/USD closed in NY Friday at $1.3140 with rate marked up to $1.3170 into early Asian trade Monday on the positive outlook regarding today’s Eurogroup meeting on Greece, as well as China cutting it’s RRR by 50bps, adding to the risk on tone. EUR/JPY demand into Tokyo trade provided the added lift to take rate above $1.3200. Macro buying of EUR/GBP and EUR/JPY took rate on to the overnight high of $1.3238 before upside momentum faded. Reversal was given an added push as an Asian macro account sold from above $1.3220, taking it back to $1.3205. Optimism for a positive outcome for today’s Eurogroup meeting saw market opening Europe long and primed for a squeeze, some looking for closure of the technical gap between the NY/Asia sessions. Rate was pressed back below $1.3200 before meeting decent demand which kept rate buoyed above $1.3180. Recovery back above the figure was given momentum by leverage buying, the rate making a show above $1.3220. Positive comments pre Eurogroup boosted recovery to $1.3264 late morning.
EasyForexNews Research Team