Opened early Europe at $1.2295, EUR/USD closed in NY at $1.2285, off traded lows of $1.2260, with rate under pressure into early Asian trade as traders marked rate lower on reaction to weaker than expected Chinese inflation data and ahead of today’s Eurogroup meeting where expectations have been dampened by Finland’s comments Friday highlighting the ongoing political divide. Press reports suggesting Ireland’s debt could peak at 120%/GDP next year (tipping economy back into recession) and that the Italian economy could shrink by 2.0%, also weighed. Rate officially opened at $1.2255 before stops below $1.2250 were triggered which took rate to extended lows of $1.2225. Option linked demand cushioned the move (barriers at $1.2220 and $1.2200) before rate recovered, the move up boosted at the Tokyo open, taking the rate to session highs of $1.22965. Rate settled between $1.2280/$1.2300 ahead of the European open. Early demand into Europe squeezed rate up to $1.2307, but layered offers to $1.2320 countered and eased rate back to the $1.2280/75 area.
EasyForexNews Research Team