Opened early Europe at $1.2790, EUR/USD closed in NY Friday at $1.2782, off late extended recovery highs of $1.2795. The corrective pullback continued into early Asia, the rate pressed to a session low of $1.2749 before meeting US name demand. Rate recovered to $1.28018, the move prompting talk in Asia that buying was for the Tokyo fix. Once fix was over rate drifted off to $1.2785. Rate bounced back, extending session highs to $1.2813 before meeting stronger resistance. Rate drifted lower again, trading around $1.2785 into early Europe after meeting support ahead of $1.2780. Rate met fresh sell interest into early Europe with rate pressed back to $1.2757. Demand emerged into the dip to taker ate back up to $1.2788 before settling back between $1.2760/80. Little data of significance, and a market analyzing the weekend G8 meeting, has made for subdued trading conditions, ongoing short covering seen meeting willing sellers and keeping rate in check. Focus now turns to Wednesday’s informal EU heads of state dinner for direction.
EasyForexNews Research Team