Closed in NY Friday at $1.3172, off rally highs at $1.3187 after rate had been driven higher on the back of a general dollar sell off prompted by the release of slightly softer than expected US data. Early demand Monday for Aussie in turn prompted strong buys of EUR/JPY, targeting stops through Y110.00, provided the initial lift in EUR/USD to take rate back up to retest Friday’s highs, extending the topside to $1.3188 before momentum faded. Traders Friday had reported Asian sovereign supply in the $1.3190/1.3210 area, said to be the same name that had bought in the $1.3020/00 area. Rate drifted off highs, as EUR/JPY slipped back below Y110.00, with rate again meeting demand at the NY pullback level of $1.3160. Fresh demand into early Europe sees rate trade back around $1.3175. Offers remain in place into $1.3190, with interest extending to $1.3210. Further offers noted between $1.3220/25, with stops placed on a break of $1.3230. Support remains at $1.3160/50 with stops below, traders suggesting to buy dips into $1.3135/20. Very light data calendar, Fed Dudley speaks.
EasyForexNews Research Team