Closed in NY at $1.2934, with rate pulling back from its recovery highs of $1.29799 having met stiff resistance into $1.2980. Rate got an early lift to session highs of $1.2944 as news of JPMorgan’s loss hit the wires, but rally quickly met strong US name supply which reversed tack. The move through $1.2920/15 triggered stops to take rate to lows of $1.2905. Move lower was aided by strong EUR/GBP sales, this rate eventually taking out its barrier at stg0.8000, touching stg0.7995 before bouncing. This bounce in the cross relieved pressure on EUR/USD, the rate itself meeting strong demand ahead of its own option barrier at $1.2900 ($1.29-1.34 DNT). Rate recovered to $1.2930, settling into the Asian afternoon between $1.2915/30 before slipping down into $1.2910/25 ahead of the European open. Rate currently trades around $1.2922. Traders expect another day of headline driven moves with focus on the fallout from JPM, as well as the political maneuvering in Greece and bank concerns in Spain. Bids remain in place between $1.2905/00 ahead of barriers at $1.2900. Stops below to expose $1.2880.
EasyForexNews Research Team