EUR/USD closed in NY Friday at $1.3077, just off pullback lows of $1.3070, with rate opening into Asia around $1.3100 (session highs) before turning lower again. Rate had drifted down to $1.3062 in Wellington before DJ reran the story that Moody’s would announce their decision on ratings for a large number of European banks. This is an old story, released Friday, and is already highly anticipated for early May. However, rate dropped through corporate demand at $1.3050 extending lows to $1.30089 before US name buys, sitting ahead of well reported barrier interest at $1.3000, kept rate buoyed. Rate settled between $1.3015/30 through to the European open. Concerns over Spain continued to provide a heavy tone for the euro with early Europe taking advantage of the situation to target and trigger the barriers at $1.3000. Rate touched a low of $1.29945 before profit take buys emerged to edge rate back above the figure, settling between $1.3000/20 ahead of New York. Underlying tone remains heavy into the US session, stops noted below $1.2985.
EasyForexNews Research Team