Opened early Europe at $1.2785, EUR/USD closed in NY at $1.2818 after rate had extended its recovery off session lows of $1.2725, with another boost at the IMM close taking the rate to late session highs of $1.2825. Rate touched an early high of $1.2820 in Asia, as the market was seen gearing up to take out upside stops above $1.2825, before turning lower, Japanese sales of Aussie-yen post Tokyo fix weighed on risk sentiment and squeezed EUR/USD to an eventual session low of $1.27821. Rate recovered off lows, with added demand into early Europe eventually able to take rate back above $1.2800 but met profit take sell interest ahead of $1.2810, which capped move at $1.2807. Rate reversed, the move down given added weight as Spanish T-bill auction disappointed, along with OECD forecasts which weighed on commodities and in turn general risk. EUR/USD traded to a low of $1.27541, meeting demand between $1.2760/50 before recovering to $1.2773. However, underlying tone remained negative risk with recovery attempts remaining shallow and laboured.
EasyForexNews Research Team