Closed in NY at $1.2628, just off late session rally highs of $1.2635 after rate was driven higher on reports that G20 were preparing coordinated action to provide liquidity if needed after the Greek election, with talk that pro-bailout New Democracy were seen ahead in the polls. Rate continued the pullback in early Asia, easing to a low of $1.2614 as rate also reacted to soft Asian equity markets. Rate met willing buyers into the dip , the recovery gaining a boost as USD/JPY was sold off after the BOJ left rates unchanged, taking
EUR/USD to session highs of $1.2646 into Europe, with rate holding firm at writing. Offers seen placed to $1.2650 ahead of Monday’s post Spain bank bailout agreement high of $1.2672, with offers noted between $1.2670/80. The 76.4% retrace of the fall from $1.2824 to $1.2288 seen at $1.2698 and expected to draw offers into $1.2700. Support seen at $1.2620/10, more into $1.2600 with stops below. Eurozone employment and trade data due at 0900GMT but headlines remain key. Expect more talk of contingency plans for the outcome of Sunday’s Greek election.
EasyForexNews Research Team