EUR/USD closed in NY at $1.3123 after settling following a NY afternoon recovery to $1.31376. Trade through the overnight session was contained within a tight $1.3110/32 range, favouring the bottom end into early European dealing. Rate came under pressure into early Europe, as market probed for stops below the Asian base, taking the rate to $1.3105
before fresh demand emerged. Rate recovered to $1.3125 before turning lower again as heavy EUR/GBP sales emerged from a UK clearer. Rate retested lows before turning higher as it tracked cable’s rally. EUR/USD held around $1.3130 before pushing higher, the move up seen as the UK clearer EUR/GBP sell order completed, with stops above $1.3140/45 triggered to take rate up to $1.3159. Spanish auction result saw an initial spike on to $1.3164 on size of take up, but quickly turned lower as traders said result disappointed (OK vs expected good), taking rate to $1.3120. French auction passed without problem and allowed for recovery above $1.3130, aided by Asian sovereign buys.
EasyForexNews Research Team