Opened early Europe at $1.3146, EUR/USD closed in NY at $1.3158, after rate had recovered from session lows of $1.3122 to $1.3168. Rate touched an early overnight high at $1.31605 before continuing its corrective pullback, the rate easing to an eventual low of $1.3136 before settling above $1.3140 into the European open. Trade through Asia was again seen subdued with main action seen in Aussie and Kiwi. Japanese markets were closed for the completion of their Golden Week holidays. Rate picked up early demand into Europe, the rate able to probe above the overnight high, extending to $1.31638 as traders hunted for stops, before sinking back. Rate eased to retest overnight lows at $1.3136, despite Spain and France bond auctions passing without fuss, the rate extending lows to $1.3123 on Spanish name sales in late morning with positioning seen ahead of today’s ECB rate announcement/press conference. Weak talk of increased possibility of a rate cut today, most though suggest no change and Draghi to be dovish, possibly laying ground work for a cut in June.
EasyForexNews Research Team