EUR/USD closed in NY at 1.3335 with rate marked up to $1.3358 into the Asian open as risk was given a general boost by the weekend release of surprisingly strong China PMI. Rate extended the react rally before stalling at Friday’s high of $1.3377 (Europe). Rate drifted lower through the balance of the overnight session, filling any technical gap left by the NY close/Asia open, with rate marking lows at $1.3331 before settling between $1.3335/45 into Europe. Early demand into Europe took rate to $1.3355 before getting pressed back to $1.3340. A strong rally in cable aided recovery, with it edging to an eventual high of $1.3381 despite release of disappointing Eurozone PMI data. Rate reversed off highs as market jitters concerning Italy and Spain emerged, equity markets in these states acting to press EUR/USD lower, though it met support around $1.3340. Rate was trading back above $1.3350 in later European morning trade though traders have reported flows lower than usual with a few traders out for Easter holidays at the end of the week.
EasyForexNews Research Team