Opened early Europe at $1.2742, EUR/USD closed in NY at $1.2716, as rate was recovering off a late pullback to $1.2702. Rate continued this recovery, from an early posted low $1.2712, trading to a session high of $1.27495 on short cover demand and aided by the release of better than forecast Japan Q1 GDP which took EUR/JPY higher while USD/JPY held steady. Rate eased off the early highs, settling within a $1.2734/49 range into Europe. Rate was holding toward the upper end of that range into early Europe but subdued conditions, due to the Ascension Day holiday in several European centres, allowed CTA demand for dollars influence the rate lower through the European morning. The Spanish bond auction provided some respite, as it passed with little excitement, but rate was quick to reverse react gains and pressure reported demand between $1.2710/00. This area cushioned the move lower at $1.2705 though recovery efforts remained shallow. Market on watch for any Greek/Eurozone headlines knowing the influence they can have, positive and negative.
EasyForexNews Research Team