EUR/USD closed in NY at $1.3270 after rate had been pushed to a high of $1.32914 on Greek PSI optimism. Trade through Asia was contained within $1.3256/79, the rate settling toward the lower end into early Europe and the Greek PSI pick-up release. The 85.8% take up concluded the ‘buy the rumour, sell the fact’ scenario as rate gets shoved down to $1.3238 on the initial reaction. Further sales extended move to challenge the NY low at $1.3224 before bouncing back to $1.3240. Further sales eased rate to an extended low of $1.3213 (trendline from $1.2624 moving back into play), after stops were triggered below $1.3220. Recovery efforts have been capped by rate’s initial react low at $1.3238, with market now on watch from comments from Eurogroup (meeting now at 1130GMT) and the ISDA meeting at 1300GMT. This ahead of the key US jobs data event at 1330GMT. Headline trading into the afternoon expected to make for volatile market moves.
EasyForexNews Research Team