EUR/USD closed in NY at $1.3240, having seen its recent recovery extend to highs of $1.32659 as the market reacted to the Greek CDS settlement, the EFSF sale of 20-year bonds and confirmation that the ECB is putting its bond-buying programme on the back burner. NAHB’s unchanged housing market index of 28 in March was also cited for placing pressure on the dollar. Tokyo holiday made for subdued trading through Asia with rate taking direction from Aussie dollar moves. EUR/USD initially eased to $1.3228 before getting a lift to $1.32441 as the AUD gained on the back of RBA Minutes (downside risks somewhat less likely to materialize) before this rate dropped on warning’s from BHP Billiton on China growth concerns. EUR/USD eased to $1.3225 before meeting demand, trading above $1.3230 into Europe. Rate recovered to $1.3240 in early Europe before dropping back to $1.3205. Demand placed here lifted rate to $1.3235 before dollar demand via EM pressed rate to $1.3089 before meeting Asian sovereign demand which cushioned.
EasyForexNews Research Team