Opened early Europe at $1.2530, EUR/USD closed in NY at $1.2532 following a recovery off late pullback lows of $1.25205. Rate had seen lows of $1.25153 earlier in the day, with a recovery seen to $1.26205. A US bank was an aggressive buyer in early Asia taking the rate to $1.2553. Strong dollar-Asia demand emerged again and prompted general dollar demand which pressed EUR/USD down to $1.2518, with market probing for stops below the NY base. Rate recovered ahead of the European open, with recovery extending through the earlier Asian highs on general short covering. The move extended to an eventual high of $1.26028, with rally aided by equity market recovery. Momentum faded above the figure, with rate slipping back to $1.2575 as market reacted to negative eurobond comments from ECB Weidmann. Rate was holding around $1.2585 ahead of the NY open. Long US weekend ahead, as wall as a shortened US session today, has prompted some short covering though sellers remain to take advantage of upticks. Strong demand ahead of $1.2500 barrier, offers into $1.2620.
EasyForexNews Research Team