Opened early Europe at $1.2887, Closed in NY Friday at $1.2928. Rate initially marked highs at $1.2933 into Asian dealing, as a US name drove Aussie up to an early high of $1.0062 following the China 50bps RRR cut at the weekend, before turning lower. Downside momentum was given a boost as Greek Syriza party leader Tsipras announced he would not be attending coalition talks later Monday. A UK bank bought ahead of the barrier at $1.2900 but sell pressure eventually overcame, with triggered stops taking the rate to an eventual low of $1.2878. Demand edged rate back toward $1.2900, but was held below ahead of the European open. Rate came under fresh sell pressure into Europe as macro and system accounts showed decent demand for dollars. A UK clearer was a noted buyer into the early dip but again sell interest overcame to take rate to extended lows of $1.2862 as market positioned for a poor Spanish t-bill auction. Weaker than forecast Eurozone IP data had little effect with rate able to edge back to $1.2880 as Greek Left said they would attend talks without Far Right.
EasyForexNews Research Team