EUR/USD closed in NY at $1.3300 having recovered off session lows of $1.3251 through the NY afternoon. Rate marked lows into early Asia at $1.3295, as early traders targeted downside stops in USD/JPY and EUR/JPY, with rate reversing higher as Japanese life companies emerged as strong EUR/JPY buyers which propelled EUR/USD higher. The move triggered stops through $1.3330-50, with rate touching a high of $1.3359. Pullbacks remained shallow, finding support around $1.3345 ahead of Europe. Fresh demand into Europe took rate up to $1.3365 before semi official supply countered and dropped rate back to $1.3340. Dip met middle eastern buying, which along with a spike higher in cable, took rate to extended highs of $1.3377. Sharp reversal in cable took EUR/USD back to $1.3340, with fund sales pressing the rate below to pressure reported stops. Rate traded down to $1.3325 before meeting solid support between $1.3325/20 with rate recovering to $1.3350 ahead of NY. Traders note interest to fade rallies continues.
EasyForexNews Research Team