Opened early Europe at $1.3251, EUR/USD closed in NY at $1.3240 after recovering off session lows of $1.3209 (Europe low $1.32076). Rate retained a subdued attitude through most of Asia, with more attention seen on yen plays, Japan returning after the Monday holiday, and Aussie ahead of the RBA rate decision. Early trade was restricted within a range of $1.3234/44 with rate dipping to $1.3237 before spiking up to $1.3260 as the RBA went for the larger 50bp cut option, initial react sales of AUD pressing the rate down before bouncing back on EUR/AUD demand. Rate drifted back to settle between $1.3240/50 into Europe. May Day holidays closed many European centres today which led to early lethargy in Europe until system buyers emerged to take advantage of the thin conditions by taking rate through the overnight highs and on to $1.32788. The move took out any barrier interest at $1.3275 (weak report) with rate drifting off toward $1.3260 ahead of the New York open as same systems reverse tack.
EasyForexNews Research Team