Opened early Europe at $1.2665, EUR/USD closed in NY at $1.2697, after recovering off session lows of $1.2688. Rate came under early sell pressure into Asia, French name hit a thin market that took rate to initial lows of $1.26661. Rate recovered to session highs of $1.2708 ahead of Tokyo open before fresh sales emerged into this session from macro and momentum accounts. Supply took the rate back below $1.2700, the move meeting support at $1.2670 before recovering to $1.2690. US names and a Japanese securities house then emerged into European open to take rate through the earlier spike low, extending the base to $1.26542. Reported demand at $1.2655/50 cushioned the move, allowing rate to recover to $1.2673 before it dropped back, triggering the barrier at $1.2650 and finding a base at $1.26425. Leveraged and real money demand led a slow recovery, the eventual break of $1.2680 took it to the $1.2700 area but macro and Asian sovereign supply, following overnight dollar interventions. Rate settled between $1.2675/00 ahead of NY. A large $1.2700 expiry noted.
EasyForexNews Research Team