Opened early Europe at $1.2537, EUR/USD closed in NY Friday at $1.2565 after pulling back from a session high of $1.2583, then recovered into the close from $1.2522. Rate came under pressure into Asian dealing, some linking this to the Troika delaying its visit to Athens, Greek PM Samaras not attending the EU Summit as well as an article in the WSJ suggesting investors are moving away from bunds. Traders also note the AB InBev interest to buy the rest of Mexico’s Modelo in a deal that could be worth $10bln. Rate settled between $1.2530/40 for the opening few hours of Tokyo trade before getting pressured to session lows of $1.2523. Rate edged back into the $1.2530/40 into Europe, but early macro selling emerged to press rate lower again, breaking under the Asian base before Russian selling from below $1.2510 took it under $1.2500. Bids placed down to $1.2480 cushioned the move, the rate posting initial lows at $1.2485 before edging back above the figure on short covering. Heavy selling of EUR/JPY late morning pressed rate to fresh lows of $1.2482.
EasyForexNews Research Team