Closed in NY Friday at $1.2989 after rate had traded with a positive speculative tone through Europe and NY on anticipation that the weekend would bring a deal for Cyprus. Rate had seen highs around $1.3010 after recovering from sub $1.29 following the brief set back provided by the weak release in Germany Ifo. The rate came under pressure into early Asian dealing as traders reacted to the failure to find an agreement for Cyprus ahead of market opening. Rate was pressed to initial lows of $1.2965, with move extending as market reacted to a wire headline that Cyprus was resisting bank restructuring proposal to $1.2943. No further negative news allowed rate to recover, edging back to $1.2980 with move then getting a boost as news filtered through that a tentative agreement had been reached. Euro-dollar spiked on to $1.3031, triggered stops lifting it on to $1.3048. Rate squeezed back to test the broken resistance at $1.3010 before pushing back up to retest highs as details of the agreement were announced. Rate was seen holding firm into Europe, just off the overnight highs. Offers are seen into $1.3050, a break to expose the $1.3076, which if hit would close last weekend’s technical gap.
EasyForexNews Research Team