The pair had a torrid start to the new week as it hit lows not seen in almost 9 years earlier today. Euro-dollar had ended on Friday at $1.2002 and held near that in the initial few hours of the Monday session. Attention was focused on weekend reports about Greece, particularly reported comments from German Chancellor Merkel, suggesting that the eurozone would be able to withstand the exit of Greece. Euro-dollar’s subsequent pullback below $1.2000 took place in very thin conditions, resulting in a spectacular drop through $1.1900 and on to a low of $1.1864 within minutes. That was the pair’s lowest level since February/March 2006. Euro-dollar rebounded a bit after that as markets calmed a bit, and it took back $1.1950 before extending the recovery to $1.1976. Sellers then appeared off $1.1980 and that capped the rebound, with euro-dollar spending the rest of the morning holding a $1.1945/65 range before slipping further in the early afternoon. The pair was last at $1.1941.
