EUR/USD closed in NY at $1.3325, off pullback lows of $1.3315 and seen after rate was sold down in reaction to Fed Bernanke comments, or rather no reference to possible Q3. Rate marked lows in Asia at $1.3318 in opening trade before pushing higher, the move seen influenced by cross yen demand, which in turn was led by EUR/JPY buys. Rate moved above $1.3340 to trigger stops, the release of stronger than forecast China PMI data took rate on to an eventual high of $1.33565 ($1.3355 23.6% $1.3486/1.3315) ahead of the European open. Rate eased back to $1.3335/45 into the session before macro dollar demand provided the weight to take rate below the Asia/NY lows and on to $1.3307. Strong Asian sovereign demand greeted the dip, though initial recovery efforts proved laboured. Eastern European buys lifted rate back toward $1.3350 before momentum faded. Rate then dropped back to the $1.3325 area in subdued trade. Traders have noted talk of a large $1.3340 strike expiry for today’s 1500GMT, suggesting level has kept rate anchored.
EasyForexNews Research Team