Closed in NY at $1.3240, having seen its recent recovery extend to highs of $1.32659 as the market seemingly reacted to the Greek CDS settlement (final value of 21.5%), the EFSF’s sale of 20-year bonds and confirmation that the ECB is putting its bond-buying programme on to the back burner. NAHB’s unchanged housing market index of 28 in March was also cited for placing pressure on the dollar. The Tokyo holiday made for subdued trading through the overnight Asian session with rate taking inspiration from AUD moves. EUR/USD initially eased to $1.3228 before getting a lift back to $1.32441 as the Aussie gained an early boost on the back of RBA Minutes (downside risks somewhat less likely to materialize) before this rate dropped back on warning’s from BHP Billiton that Chinese demand for iron ore was likely to drop, prompting China growth concerns. EUR/USD eased to $1.3225 before meeting demand between $1.3225/20, with rate trading above $1.3230 into Europe. Below $1.3220 and rate can ease toward $1.3200 ahead of $1.3185/80. Resistance $1.3265, $1.3290/$1.3300.
EasyForexNews Research Team