It’s also been a quiet start for the euro this morning, opening at $1.1314 largely unchanged from Friday’s close in New York before it traded a $1.1299 to $1.1330 in initial dealings. Unsurprisingly Greek concerns were at the forefront, especially with new PM Tsipras showing no signs of compromising while weekend reports also suggested increasing signs that Greece was indeed heading toward an exit from the euro. The currency market however showed a relatively muted response after euro-dollar bounced off an early $1.1286 low today. Euro-dollar crept back up as the US dollar broadly retreated, and euro-dollar rising past its opening levels by the time Asian stock markets got underway. Euro-dollar continued to edge higher through the morning, eventually hitting a late morning peak of $1.1340. It last trades at $1.1337. RBC’s Greg Moore notes, “Political risk should be a defining theme for EUR this week and the EU Leaders Summit on Thursday is the focal point.” Initial support for euro-dollar is seen at $1.1264, marking the 61.8% fibo retracement of the $1.1098 to $1.1534 rise. Initial resistance seen at $1.1344 (14 HMA).
