Rate closed in NY Friday at $1.2516, having seen lows in this session of $1.2495 before bouncing back after taking out option barrier interest at $1.2500. Rate opened in Asia at $1.2544, leaving a decent gap as it was marked higher following weekend press reports showing Greek pro-bailout party ND overtaking SYRIZA. This along with suggestions of Swiss imposing capital controls to deflect likely Chf inflows on a Greek EMU exit, suggestions of an EMU bank rescue fund and weak talk China looking at an infrastructure stimulus package all aided a positive tone into the week’s trade. EUR/USD extended gains to $1.2570 in opening trade on US name buys, with Canadian name demand then taking it on to $1.2581 on stop driven trade. Rate then settled back at $1.2570/75 before another US name lifted rate on to $1.2598, on suggested buying for a short term European discretionary fund. Rate retained a firm tone into Europe, extending rise to $1.2608. Offers seen to $1.2620 with attractive stops noted through $1.2625/30. US holiday so expect main trade to be transacted early Europe
EasyForexNews Research Team