Opened at $1.2622 after $1.2570/1.2629 overnight range, Euro had been capped ahead of the US session as chatter cited Dutch name sales offsetting demand from model and macro names, traders describing euro short-covering ahead of the Wednesday FOMC rate announcement. A run on stops above $1.2630 stalled briefly around $1.2645 but euro made further headway after the option expiry hour, lifting to $1.2675 and then spiking to $1.2700 on the London fixing. Gains extended to $1.2707 as additional stops were tripped but momentum stalled there, euro consolidating around $1.2680/90 into early afternoon. A later spike higher punched the euro to $1.2730 as stops above $1.2720 were victimized and as a report said Germany may concede to peripheral bond buys by the bailout fund but euro settled back from there for trade to $1.2710 and slipped to $1.2685 as that report was denied by a German official. Late dealings saw the euro at $1.2690.
EasyForexNews Research Team