The pair was under pressure during the early European session Monday, sliding to a $1.3708 low before a strong open in US stocks encouraged a recovery back to $1.3748. Euro-dollar closed around $1.3737 in New York. The rate then saw a slow start to the pre-Asian dealings so far, with euro-dollar opening at $1.3733 and then edging up to an early $1.3737 high. Euro-dollar extended gains to $1.3740 high before giving up and turning slightly lower as euro-yen fell. Euro-dollar spent the rest of the session on the sidelines, and was last at $1.3736, capped by offers from $1.3770/75, which are considered to be fairly strong. Further up, euro-dollar is seen needing a break above highs of $1.3770/77, before it can see any meaningful test of $1.3790/3800, where there’s been fair amount of talk of possible sovereign supply. But on the downside, below this morning’s $1.3729 low and last night’s European low of $1.3708, bids are also seen fair-sized from $1.3700, according to dealers.
