EUR/USD closed in NY Friday at $1.3267, the rate recovering off a late pullback low of $1.3255 after touching a session high of $1.3284. Rate opened Asia around $1.3270 with early trade contained by $1.3270/73 in opening trade before pushing up to $1.3285 as market reacted to press reports that Germany’s Merkel would allow a temporary increase of the ESM firewall (Ecofin meeting Friday-Saturday this week to discuss). However, rate met headwind sell interest from reported Japanese exporter cross yen sales, as well as option linked supply placed ahead of barriers at $1.3300, $1.3315 and $1.3330. Rate was trading back above $1.3250 into early Europe. Rate traded between $1.3250/65 in opening European dealing before getting pressed down to $1.3235. Rate recovered to $1.3242 ahead of IFO, getting lifted on to $1.3263 on better than forecast data. Move was greeted by middle eastern supply which pressed rate back, with triggered stops through $1.3220 and $1.3200 taking rate down to an eventual low of $1.3192. Rate was pivoting $1.32 ahead of NY.
EasyForexNews Research Team