Opened early Europe at $1.3148, EUR/USD closed in NY at $1.3152 after rate had recovered from lows of $1.3195 to $1.3181 through the ECB press conference, as Draghi failed to fulfill expectations of a dovish stance. Another subdued Asian session, Tokyo markets remaining closed for Golden Week and the usual pre US employment report prompting low interest, with commodity currencies providing the only real interest. EUR/USD slipped to overnight lows of $1.3144 in early EUR/NZD sales, before recovering to $1.3162, settling around $1.3150 ahead of the European open. Rate came under mild negative pressure into early Europe, with leveraged names adding to shorts as Eurozone services and composite PMI data came in below expected/flash levels that took rate down to lows of $1.3127 (61.8% $1.3095-1.3180). Bids placed between $1.3130/20 cushioned the move, with Asian names noted buyers as rate lifted higher, though momentum remained low. Focus on the US Employment Report at 1230GMT to gauge level of expectation for chances of QE3 going forward.
EasyForexNews Research Team