Opened early Europe at $1.2554, EUR/USD closed in NY at $1.25439, off pressured lows of $1.2532. Risk suffered through the NY session as market was made aware of the action by Moody’s to downgrade 15 major financial institutions, position adjustment ahead of initial Spain bank audit results (full results due in Sep) and Goldman Sachs putting out a short S&P recommendation. EUR/USD continued its recovery into early Asia, as markets viewed the Moody’s action as not as bad as it could have been, as well as the initial Spain audit showing bank needs around expected levels and off the E100bln that could be allotted. Rate settled between $1.2552/62 through the Asian afternoon. Rate came under renewed downside pressure into Europe, initially probing the Asian low before the break took rate through the NY base and on to $1.25188. Strong demand between $1.2520/00 cushioned the move, with Asian sovereign buys eventually taking it back toward $1.2560. Rate was holding around $1.2545 ahead of NY. Risk remained on the backfoot through Europe, rate open to headline reacts.
EasyForexNews Research Team