EUR/USD closed Monday’s session at $1.3240, having been pushed up to a high earlier in the day of $1.3277 (from $1.3183 pullback lows in early Europe) on optimism over a Eurogroup Greek debt aid deal. Press conference calls were delayed and tempered Monday’s enthusiasm into Asian trading. Rate drifted lower, the move to $1.3199 given an added shove as traders reacted to an FT article suggesting that Germany, Netherlands and Finland were showing deal reluctance. Rate recovered, meeting resistance around $1.3245 before a US real money account sold back into the recovery, taking the rate to overnight lows of $1.3186. Announcement that Greek debt aid deal agreed saw rate spike to $1.3270, extending to session highs of $1.3293. Rate eased to the $1.3250 area only to pick up fresh demand that took it back toward highs into Europe. Recovery met mid east supply which pressed it back to $1.3230 where it met Asian sovereign demand. Recovery to $1.3290 then met semi official supply with rate dropping back to challenge demand between $1.3230/20.
EasyForexNews Research Team