Opened at $1.3150 after $1.3142/31 overnight range. Euro was on the defensive still as US dealings got underway, part of a bigger risk-aversion trade that continued after FOMC minutes were deemed less dovish than expected. US traders wasted little time in pressing EUR lower, momentum building from layered stops and as ADP data seen as a USD positive. Euro slid to $1.3107 in morning dealings before regaining some poise, talk soon emerging of barrier protection ahead of $1.3100 and usual Asian names cited. Rebound stalled at $1.3145 around the option expiry hour and with resistance eyed at $1.3150/60, EUR deflated to $1.3111 around the London fixing hour. Rebound from there stalled at $1.3140 ahead of the London close and EUR/USD held inside $1.3120/45 through the U.S. afternoon and as flows slowed to a trickle. Euro ended around $1.3140.
EasyForexNews Research Team