EUR/USD closed in NY at $1.3457 after rate had recovered off pullback lows of $1.3389 (lows seen on reaction to Ireland’s call for a referendum on the EU fiscal treaty), pushing to an intraday high of $1.34715 ahead of the close as risk outlook was boosted on the Dow close above 13000 (first time since 2008). Rate saw session lows at $1.3455 into early Asian trade before pushing higher on end month EUR/JPY demand into the Tokyo fix. Rate met decent offers placed at $1.3480, with spec longs covering back to take it to $1.3465. Another push higher extended rate to $1.3486 but traders said to have met heavy offers above $1.3485 ($1.3487 Feb24 high) which then saw rate settle between $1.3470/85. A late squeeze took rate to $1.3465/75 into the European open. Early demand took rate to $1.3480 in Europe, meeting semi official supply which took rate down to $1.3452. Asian sovereign demand cushioned ahead of $1.3450, prompting a recovery to $1.3465. Position adjustment ahead of LTRO announcement squeezed rate to $1.3449 before bouncing back to around $1.3470. E529.531bln take up of LTRO saw rate dip to $1.3436 before bouncing back above $1.3460, with sales of EUR/AUD then pressing rate down to $1.3430 in late morning trade. Asian sovereign demand here was seen underpinning but level remained under pressure. End month fix interest and Fed Bernanke Testimony the highlights for the NY session.
EasyForexNews Research Team