EUR/USD closed in NY at $1.3360, off traded highs at $1.3368 and seen after markets reacted to Fed Bernanke’s dovish comments. Rate basically flatlined through Asia with trade contained within a tight range of $1.3343/66. Early French name demand for EUR/JPY provided the move up to the overnight highs though momentum failed to take it through the NY top, with Japanese exporter EUR/JPY sales post fix cited for pressing the rate to the lows. Rate was trading around $1.3350 into early Europe before coming under pressure, regional Chinese names and Asian prop desks had been noted sellers overnight off the highs suggesting Asian sovereign sell interest sitting above. Rate pressed down to lows of $1.3328 before meeting demand. Rate recovered, aided by cable’s rally while EUR/GBP met decent demand into stg0.8350. EUR/USD met semi official offers at $1.3355 which stalled recovery but a late morning push took out barriers at $1.3375 as it extended to $1.3385. Rate was holding off highs ahead of NY, though seen buoyant.
EasyForexNews Research Team