Opened early Europe at $1.2142, EUR/USD closed in NY at $1.2155 after settling between $1.2145/60 following the rate’s short squeeze recovery through the day, extending its recent recovery off lows of $1.2042 to $1.21705. Rate drifted to a session low into Asia of $1.2127 on Tokyo fix EUR/JPY sales, but demand quickly emerged to correct move back to $1.2145, with rate settling between $1.2130/45 ahead of the European open. The risk appetite tone remained in place into Europe, with market suggesting that Wednesday’s ECB Nowotny comments concerning an ESM banking license, coming ahead of Aug 2 ECB meeting, could gain some traction. Rate nudged to an extended high of $1.2162 in early Europe, but reported offers between $1.2160/75 prevented a triggering of stops above $1.2175. Rate drifted lower through the balance of the European morning, extending lows to $1.2118 with traders suggesting SNB euro recycling for adding the main weight. Rate was holding around $1.2128 ahead of the NY open in an otherwise lackluster trading session.
EasyForexNews Research Team