EUR/USD closed in NY at $1.3082 after correcting back from a late recovery high of $1.3100. Rate eased to $1.3066 in early Asian trade, as rate was influenced by Aussie sales as that market targeted stops below $1.0250. EUR/USD recovery was boosted as traders reacted to the dollar-yuan fix, some seeing the level higher than expected, which took EUR/USD up to $1.3084 before Japanese trust fund demand for EUR/JPY provided the added upside momentum to take rate on to $1.3194. Rate retained a firm tone into early Europe, with stops above $1.3100 triggered taking rate to an early extended high of $1.3109. Brief pullback picked up further demand which took rate on to $1.3118 before reports emerged of a large offer sitting at $1.3120. Rate eventually spiked to $1.3132 on suggested 0700GMT fix demand from a US custodial, with rate sinking back to $1.3090 on order exhaustion. Fresh demand into the dip lifted it back to $1.3128 as rate tracked Eurozone peripheral yield spreads/EUR/JPY recovery.
EasyForexNews Research Team