Closed in NY at $1.3032, off session lows of $1.3011. Strong demand for dollar-yen into the Asian session weighed back on EUR/USD, as EUR/JPY met resistance on approach to Y109.50, with rate pressed down to lows of $1.30041. Move met strong demand sitting ahead of decent sized option barrier interest at the figure, with recovery through $1.3030 squeezing out weaker shorts that had been positioned for a break of $1.2995 (stops). The added buys extended recovery to $1.3056 (61.8% $1.3088/04) in early Europe, after marking an Asian high at $1.3045 on the way, before extending further to $1.3068 (76.4%) as model and macro accounts sold dollars into the session. Rate drifted back to $1.3030 where it met fresh demand, the recovery again meeting resistance at $1.3068 before settling around $1.3050 into the morning close. Yen demand late morning saw EUR/JPY break back below Y109.00 but was having little effect on EUR/USD as USD/JPY also corrected lower. Trade overall was described as subdued with orders driving.
EasyForexNews Research Team