Closed in NY Friday at $1.2387 having rebounded from an initial NFP react low of $1.2219 to a high of $1.2392, settling between $1.2368/88 into the close. Risk appetite seen behind the euro move, boosted by the better than forecast US jobs data along with the initial react dip in EUR/USD offering a good exit point for euro shorts as well as indications that the Spain and Italy safety net has been strengthened. Early euro demand into Asia was seen driven initially by Japanese buying of EUR/JPY, tripping stops through $1.2410, then larger ones at $1.2425 were triggered on reported macro demand. Move met European offers sitting into $1.2445 which topped move out at $1.2444. Reversal in EUR/USD was given added weight as Japanese exporters sold back into euro-yen post fix, taking EUR/USD to lows of $1.2389 before settling between $1.2290/05 into Europe. A fairly data light week for the euro, Italian Q2 GDP Tuesday, German factory orders (Tues) and IP (Weds) will provide interest. Focus will be on comments concerning Spain and Italy. Offers $1.2445/50, bids $1.2380 ahead of $1.2360.
EasyForexNews Research Team