Opened early Europe at $1.2387, EUR/USD closed in NY at $1.23668, after rate was pressed to lows of $1.2361. Rate came under renewed downside pressure in early trade, the posting an extended low of $1.2358 as it took an early lead from the sell off in AUD (Tr.Sec.Martin comment on the Australian deficit), but demand placed ahead of a reported barrier at $1.2350 proved strong enough to cushion. Sovereign buys of Aussie into the dip allowed EUR/USD to track the Aussie recovery, the rate pushing to session highs of $1.23913, with early Europe extending the move as short cover demand gained pace. Middle east buying was noted in the move higher, the break above $1.2400 taking the rate to an eventual high of $1.2426. Short covering of EUR/USD positions ahead of Friday’s US employment report, and the long weekend in the UK, so far seen countering any fix USD demand, which models have predicted will emerge at month end. EUR/USD offers are seen above $1.2440. Support remains back at $1.2360/50.
EasyForexNews Research Team