Opened early Europe at $1.2285, EUR/USD closed in NY Friday at $1.2322 after rate had corrected off lows of $1.2241 to $1.2390 before pulling back to $1.2295 ahead of the close. Rate was marked higher into the Asian open Monday, beginning the session at $1.2335 with Australian names the stand out buyers as rate edged up to $1.2343 before move met US name sales, said to have been for macro. Rate eased to $1.2305 as traders reacted to a Telegraph report suggesting that a full blown of Spain is ‘impossible’, WSJ noting surprise among ECB members to Draghi’s new bond buy comments and Moody’s comment that the ECB cannot resolve the debt crisis and can only buy time. The comments took the shine off the euro’s early buoyant start, the rate eventually easing below the figure before settling between $1.2285/95 ahead of the European open. Busy week for events and data with highlights being Thursday’s ECB rate decision ahead of Friday’s US jobs report. FOMC Tuesday and BOE Thursday also in focus, with month-end trade for Tuesday expected to see euro demand. Offers $1.2340/50, $1.2375, larger $1.2420. Bids $1.2270, stops $1.2260.
EasyForexNews Research Team