EUR/USD closed in NY at $1.3233, with early demand into Asian dealing taking it to highs of $1.32499. Rate reversed to $1.3211 before recovering in steps to $1.3240 into the European open. Main trade through the Asian session was seen driven by euro crosses, especially EUR/AUD and EUR/JPY, with negative analysis of the Greek aid programme also providing some bearish undertones but risk on countered. Rate extended recovery to $1.32645 in early European dealing, easing off highs as market reacted to disappointing French PMI data. German flash PMI’s were also marked lower with the EMU flash composite dropping below 50.0 providing the weight to take rate to extended lows of $1.3215. Asian sovereign buys, as well as cross related demand, emerged into the lows and allowed rate to edge back toward $1.3240/45. The disappointing EMU flash PMI data has some traders suggesting that it leaves the door open to further ECB easing.
EasyForexNews Research Team