EUR/USD 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 was sold off, meeting demand at $1.3068 (recovery Thursday stalled here before the NY break higher) where it based before recovering. Demand for EUR/JPY at the Tokyo fix reversed the early moves, aided also by reported comments from Singapore’s Lee Kuan Yew suggesting it is a good time for China to invest in EMU distressed bonds with EUR/USD able to push to a recovery high of $1.31005 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. Dip met east European demand before recovery momentum was boosted on semi official buys, taking rate to $1.3088. Rate drifted lower, eventually breaking below $1.3068 and trading to $1.3050. Rate remained heavy into late morning trade, though overall trade was described as subdued.
EasyForexNews Research Team