Opened early Europe at $1.2977, EUR/USD closed in NY at $1.3083, the rate marked lower into Asia’s open to $1.3065 as markets reacted to weekend election results in France
and Germany, but more especially in Greece, as results showed the governing coalition had failed to win a majority, with anti austerity parties making significant gains. Rate edged to $1.3070 as market made an early attempt to close the overnight gap. Rate turned lower as Japanese names sold EUR/JPY in risk-off trade. EUR/USD saw initial lows of $1.3007 before bouncing 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 and took rate to $1.29552. Rate settled between $1.2970/90 ahead of Europe. Mid east demand emerged into Europe to lift rate above $1.3000, but move met continued macro supply (major sellers overnight) before rate settled just above $1.3000, the level holding a decent sized option strike which matures at 1400GMT today. UK holiday made for thin, quiet markets.
EasyForexNews Research Team