Euro closed in NY at $1.3138 having recovered off lows at $1.3069 to $1.3152. Rate meandered its way up to overnight session highs of $1.31579 in early Asia, driven mainly by cross flow. As this demand faded so rate drifted down to the lows of $1.31289. Rate was recovering late in the session, nudging up against $1.3150 into early Europe. Markets overnight tended to trade with a mild risk off tone though the early demand for EUR/USD into Europe was possibly prompted by positive comment suggesting the IMF will attain the target $400bln funding. Rate extended recovery to $1.3164 in opening Europe trade before sinking back to retest earlier lows as Russian sellers emerged to counter. Rate had recovered to $1.3150 into IFO release, the stronger than expected data spiked rate to $1.3180 as stops above $1.3170 were targeted and triggered. Rate drifted away from the highs as bullish momentum faded, meeting support around $1.3150. IMF/World Bank meeting begins this afternoon. Comments and yields to dictate direction.
EasyForexNews Research Team