Closed in NY at $1.3084, after rate had extended its recovery off earlier Asian lows of $1.3004 to $1.3120. Rate came under pressure into early Asia as EUR/JPY came under early Tokyo pressure, with a US macro fund also adding weight. EUR/USD encountered demand between $1.3075/70 but managed to eventually post a low at $1.3068 before recovering. Demand for EUR/JPY at the Tokyo fix reversed the early moves, along with reported comments from Singapore’s Lee Kuan Yew suggesting it is a good time for China to invest in EMU distressed bonds (suggestions that Lee still has very close ties to China’s ruling elite) with EUR/USD able to push up to a recovery high of $1.3100 before momentum faded. Rate found initial support at $1.3080 on the pullback before heavier selling into early Europe emerged to squeeze rate back toward the earlier low. Rate currently trades around $1.3073 but seen meeting demand interest from eastern Europe and a hedge fund. Support remains around the $1.3067/68 area, the area providing resistance for most of Thursday’s European session. Offers into $1.3120.
EasyForexNews Research Team