EUR/USD closed in NY at $1.3105, after correcting back from a late recovery high of $1.3133. Rate marked lows at $1.3100 into Asia before recovering, the move up aided by EUR/JPY demand into the Tokyo fix but main demand emerged on rumours for strong Chinese trade data. UK clearer and a US black box fund provided the lift to $1.3145 as the data came in stronger than rumoured. Offers between $1.3145/50 countered with rate settling back around $1.3130 into Europe. Rate was initially pressured down to $1.3105 in early Europe before bouncing back to $1.3125, but slippage in cable began to add further weight and took rate back to challenge the Asian low at $1.3100. The break below the figure tripped stops and took rate down to challenge $1.3080. Stops below were targeted, a quick move to $1.3074 then saw profit take buyers emerge, with reserve buys around $1.3080 helping rate to recover to $1.3095/1.3100. Eurozone periphery concern was seen providing the main risk off theme with rate easing to $1.3080 in late morning trade.
EasyForexNews Research Team