EUR/USD closed in NY at $1.3109 after recovering off a late pullback low of $1.3094. Rate extended recovery, aided by early EUR/JPY demand into Asia, with dovish comments from Fed Yellen providing the early lift to $1.3125. Rate dipped to $1.3105 before picking up stronger demand prompted by the release of strong Australian jobs data. UK clearer buys took rate through offers at $1.3130 and on to $1.3137. Rate was holding firm into early Europe with early buys extending the recovery to $1.3150 before it met stronger supply. Semi official and custodial sales were reported as rate eased to $1.3102, euro sales prompted by pressured Portugal banking stocks under pressure. Recovery to $1.3125 before fix related dip to $1.3118 but release of strong EMU IP data spiked rate up to $1.3135. Suggestion of a weak Italian bond auction saw rate press back to retest lows before it settled above $1.3120. Bids remain into $1.310, more at $1.3095/90 with stops below. Strong offers remain at $1.3150.
EasyForexNews Research Team