Opened early Europe at $1.2295, EUR/USD closed in NY Friday at $1.2289 after seeing a late spike that took rate from $1.2242 to $1.2317. Rate opened into early Asia around $1.2283 and continued to drift lower to $1.22615 before meeting strong reserve name demand which bounced rate back to $1.2290, with momentum taking it on to $1.2301. Rate settled around $1.2300 into early Europe. O-Bon week in Japan has acted to keep subdue markets (affects corporate activity) with markets remaining in wait mode for
developments in the ECB debt aid plan. Disappointment that no easing announcement was seen from PBOC over the weekend has dampened risk-on tone, though Friday’s comments from Fed’s Williams in favour of QE3 were seen providing the counter. Rate came under further sell pressure into early Europe, the rate meeting support around $1.2272 before meeting fresh demand. Rate slowly recovered through the European morning session, the move not linked to any one buyer but rather via cross unwinds, rate able to trigger Asian stops above $1.2320 late morning.
EasyForexNews Research Team