EUR/USD closed in NY Friday at $1.3215, off session highs of $1.3229, with rate marked down to $1.3180 into the Asia open as traders reacted to weekend events, namely the French election (first round won by Socialist Hollande) and the Dutch PM looking to salvage his austerity budget amid political chaos and seen putting the Netherland’s AAA rating in jeopardy. Rate pressed to lows of $1.3177 in early trade before picking up fresh demand interest, the rate edging to an eventual high of $1.3211 before settling between $1.3180/1.3200 through to the European open. Rate challenged the overnight base in early Europe, with triggered stops below $1.3170 taking it to initial lows of $1.3165. Release of French flash PMI data added extra weight, but release of poor German manufacturing PMI data (followed in turn by poor EMU data) that knocked rate to eventual lows at $1.3135. Talk of ECB checking Spanish bond prices acted to support the euro and took it back above $1.3150, though underlying tone remained soggy.
EasyForexNews Research Team