Opened early Europe at $1.2290, EUR/USD closed in NY at $1.2318, off recovery highs at $1.23248 after rate had seen lows earlier in the day of $1.2225. Early demand into Asia saw a US bank target stops above $1.2325 but efforts were thwarted on fund supply as rate topped out at $1.2322. Rate pressed back toward $1.2300. Eurogroup statement was viewed as lack lustre with traders noting Asian reserve sales adding weight as rate moved below the figure to $1.2282. Chinese announcement of reverse repos acted to boost risk and allowed rate to recover to $1.2295. Recovery extended to $1.2304 into early European dealing before dropping back to $1.2281, as market probed for stops below the Asian base. Rate recovered, though move up was met by reserve name sales, some via the semi official. Move higher was given an added boost as cable reacted well to release of strong UK data, with boosted risk tone on reported comments taking the rate on to extend the Asian range by one point on the topside as well ($1.2323). EUR/USD was retaining a firm tone ahead of NY.
EasyForexNews Research Team