EUR/USD closed in NY at 1.3202, after recovering off session lows of $1.31334, the recovery continuing into Asia as demand for EUR/JPY influenced the rate to an extended high of $1.32134 before settling between $1.3190/1.3210 for the balance of an otherwise subdued session. Rate traded around $1.3195 in early European dealing before Russian name buying pressured the rate through the overnight highs with Swiss names joining in as stops were targeted through $1.3220 then $1.3240 before the initial move stalled at $1.3250. A second wave of buying took rate through $1.3260 with further stop triggers extending the move to retest the area of recent highs at $1.3286/91. Rate stretched to $1.3293 to take out the stops above $1.3291 before momentum faded and allowed it to drift back to $1.3245/40. Pressure on Eurozone peripheral bonds was seen leading the corrective pullback, though rate retained underlying buoyancy above $1.3240 in late morning trade.
EasyForexNews Research Team