Closed in NY at $1.2440, rate recovered from $1.2414 lows in late trade. The euro opened flat before spiking in Asian afternoon trade, as risk appetite picked up in the wake of comments from EU officials. Rate moved from $1.2450 to $1.2628 triggering a number of stops as headlines broke that a deal had been reached on a number of issues, which included a direct re-cap of banks and ESM seniority. Reported macro supply eased off highs and the euro extended losses through $1.2600 to $1.2580 as markets continued to digest events. Rate settled ahead of Europe as traders warn of initial euphoria and then reaction to recent EU summit deals. On the topside resistance seen around the Asian high, a break to scattered offers through $1.2650 – $1.2740. Near-term support at $1.2550/40, stronger behind at $1.2500. Light US data calendar today, with month end flows and further headlines expected from the summit, market conditions seen choppy.
EasyForexNews Research Team