Closed in NY at $1.2585 after getting pressed to session lows of $1.2545 as market moved into deeper risk off mode on Greek concerns. Rate had managed to recover off lows on late rumours that Germany’s Merkel was backing a bank deposit insurance scheme to $1.2601 but this talk was not confirmed after the EU Heads of State dinner and rate drifted back to the mentioned close. Rate edged to $1.2590 in early Asia as traders awaited the EU press conference. Rate was pressured lower as traders reacted to EU Juncker comments that he doesn’t see a launch of eurobonds soon, pressing to a low of $1.2555 before meeting decent demand interest. Traders note the large $1.2500 option barrier, adding that market is seen with positive gamma and expect buyers to emerge into dips. Rate recovered to $1.2585, settling between $1.2560/85 ahead of the European open. German GDP Q1 final reading due at 0600GMT, with focus today on Eurozone flash PMI readings and Germany Ifo. Further rhetoric on the Greek situation though will overshadow. Offers seen into $1.2600, system stops above $1.2610 with more sellers above $1.2620.
EasyForexNews Research Team