Opened at $1.2573 after $1.2543/89 overnight range, EUR was underpinned but in a narrow range as Asian and option related interest contained both sides of the market at the overnight extremes. EUR dipped to $1.2550 around the ECB fixing but regained its footing in the wake of benign US data, only to stall at $1.2588 and reverse to $1.2560 on mixed name flows. From there, vague and unsubstantiated talk of a eurozone “deal” of unknown nature, allowed euro to ratchet higher again for prints to $1.2606 around the option cut. Euro eased back to $1.2590 after the initial impulse and held steady until just ahead of the London close when further macro and real-money buys pushed the pair into a zone of offers and stops for trade to $1.2618. Euro settled back to $1.2590 and began climbing slowly higher, reaching $1.2610 in a budding rally before ratings action on France shoved it back to $1.2590 though it recovered easily to $1.2600, spiking to $1.2635 on report of preps for coordinated liquidity adds if needed after Greek elections.
EasyForexNews Research Team