Opened early Europe at $1.3224, EUR/USD closed in NY at $1.3218 after rate had bounced from session lows of $1.3173 to $1.3234 as market reacted to FOMC statement (viewed hawkish), then Fed Bernanke’s press conference (viewed dovish). Rate initially marked overnight lows at $1.3217 before edging higher, the move up influenced by early demand for EUR/JPY, before meeting headwind supply ahead of $1.3240, faltering at the NY high of $1.3234. Reversal in EUR/JPY led EUR/USD back to retest lows before settling around $1.3225 into Europe. Rate picked up fresh demand into Europe, with reports of large stops above $1.3250 offering a target. Rate edged higher in tandem with cable, but US corp sell interest ahead of $1.3250 countered for a while. Cable break of $1.6200 provided the boost to take EUR/USD through its $1.3250 barrier, the added buys taking it to $1.3263. Reports of semi official supply into the pullback provided weight before poor German bank earnings pressed banking sector equities lower and took rate back to $1.3220, holding heavy into NY.
EasyForexNews Research Team