Closed in NY at $1.3083, the rate marked lower into opening Asian session trade to $1.3065 as markets reacted to weekend election results in France and Germany but more especially in Greece as results showed that the governing coalition failed to win a majority of seats, with anti austerity parties making significant gains. Rate edged up to $1.3070 as market made an early attempt to close the NY close/Asia open gap. Rate turned lower as Japanese names, returning from Golden Week holidays sold EUR/JPY. The move down to initial lows of $1.3007 was reported to have been orderly, demand sitting ahead of $1.3000 cushioned at $1.3007 and allowed for a bounce back to $1.3029. IMF warning to Greece that the aid tranche will be withheld if new austerity measures are not finalized prompted heavier selling, tripped stops below $1.3000 taking the rate down to $1.29552. Rate settled for the balance of the session between $1.2970/90 before early Europe began to cover shorts and lifted rate back above $1.3000. However, Asian traders have noted offers to $1.3030, with stops above $1.3050. Bids $1.2960/50.
EasyForexNews Research Team