EUR/USD closed in NY Friday at $1.3172, off rally highs at $1.3187 after it 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, 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 $1.3190/1.3200 area, said to be the same name that had bought in the $1.3020/00 area. Rate drifted lower, as EUR/JPY slipped below Y110.00, with rate again meeting demand at the NY pullback level of $1.3160. Fresh demand into Europe lifted rate back to $1.3175 only to reverse down to $1.3142 on heavy USD/JPY and EUR/JPY sales. Dip met Asian sovereign bid interest, before settling between $1.3145/55 with the semi official noted both sides. Middle east buys extended recovery to $1.3164 with rate holding back around $1.3160 ahead of the New York open.
EasyForexNews Research Team