Opened early Europe at $1.2534, EUR/USD closed Monday’s North American session at $1.2542, off pullback lows of $1.2525, after rate had been pressed back from early European highs of $1.2625 as early risk-on tone was reversed on widening Eurozone peripheral bond spreads. Rate posted early highs into Asia at $1.2549 before macro sales took rate to lows of $1.25093, the move filled the gap left from Friday’s NY close at $1.2516 to Monday’s Asian open at $1.2544. The dip attracted buyers, as Asian equity markets rallied, demand taking the rate up to $1.2543. Early European corporate demand countered an initial pullback to $1.2525, with middle eastern buying then providing the drive to take rate up to eventual highs of $1.25752. Move above $1.2570 met Dutch name sales, seen linked to EUR/CHF balancing, with Asian sales adding weight as rate dipped back under $1.2550. Spanish source report on Spain government aid for banks provided a lift to $1.2560, but rate was then knocked back to $1.2435 on reports from China denying any major stimulus programme.
EasyForexNews Research Team