Opened at $1.2694 after $1.2643/1.2708 overnight range. Euro had struggled atp $1.2700 during European hours with chatter suggesting Dutch and semi-official sales capping, and a slight nudge higher in early US dealings stalled again at $1.2700. EUR reversed lower, dipping sharply on talk of UK clearer sales that brough real-money and model names into the game. With stops through $1.2630, euro losses extended to $1.25955 before some fresh demand emerged from the early sellers, risk appetites also pressured by disappointing US data. With tension building ahead of Spain bank audit results, euro continued lower as stops under $1.2590 and $1.2570 were targeted, a low print seen at $1.25555 before slight rebound as audit results more or less matched expectations. Euro stalled at $1.2570 on the rebound and further losses allowed prints under $1.2540 as stops were targeted late in the day, the euro holding close by as the session wound down.
EasyForexNews Research Team