Closed in NY at $1.2822, closing close to session lows of $1.2821 after rate was given another shove lower late in the session as Moody’s downgraded 26 Italian banks, the move taking out option barrier interest at $1.2825. The euro bearish tone carried over into early Asian dealing with rate pressed to extended lows of $1.2815 before macro profit take buys corrected rate to $1.2838. Fresh selling emerged on reaction to release of dovish RBA Minutes, extending session lows to $1.2814 before again bouncing back to the $1.2830 area. Traders did note some semblance of stabilization overnight, highlighting the relief in pressure on equity markets. Focus this morning on Eurozone GDP releases, France out early and was flat as expected, market awaiting Germany at 0600GMT. EUR/USD was seen holding just off overnight highs into early European trade. Offers seen placed into $1.2850. Bids remain ahead of the much reported barrier at $1.2800, with stops positioned on a break below. Greece political impasse continues with another meeting this morning to try and form a coalition government.
EasyForexNews Research Team