Closed in NY at $1.2927 following a roller coaster session which saw rate hit lows of $1.2912, recovering to $1.2978 before dropping back to $1.2925 ahead of the close. Moves were mainly dictated by market reaction to stories concerning Greek debt going forward and Spanish bank concerns. Early pressure on EUR/GBP, as US names targeted the barrier at stg0.8000, pressured this rate to lows of stg0.8001, in turn taking EUR/USD to early lows of $1.2924. Rate bounced back but met resistance above $1.2950, the recovery faltering at $1.2957 before meeting headwind sales from EUR/AUD sales following release of better than expected Australian jobs data. Release of Chinese trade data added weight as market reacted to the poor import showing (headline trade surplus was better than expected), taking EUR/USD back to $1.2934. Rate recovered late in the session but was again seen meeting decent supply interest sitting above $1.2950. Mixed message from China’s CIC, says it has stopped buying European govt debt, another that it looks for European investment opportunities.
EasyForexNews Research Team