Opened early Europe at $1.3223, EUR/USD closed in NY at $1.3235 after recovering off a post ISM low of $1.32045 to $1.3240. Rate nudged up to $1.3242 in early Asia, the market probing for stops above $1.3240 before turning lower with larger stops below $1.3200 targeted. However, rate met sovereign demand ahead of $1.3210 which thwarted this plan, with rate edging back to the $1.3230 area before settling around $1.3225 into Europe. All Asian centres were open today but trade remained basically subdued ahead of Japan completing their Golden Week holidays Thursday-Friday. EUR/USD was pressed to lows of $1.3208 in opening Europe trade but managed to settle back around $1.3230. Fresh selling emerged into PMI releases, weak Italian data providing the weight to take rate below $1.3200, with triggered stops through $1.3190/85 extending move to $1.3166 as French and German PMI, along with disappointing German jobs data, added further weight. Rate bounced to $1.3180 but stops through $1.3160/55 attracted, the break taking the rate to lows of $1.3135, holding heavy into NY.
EasyForexNews Research Team