Opened early Europe at $1.2592, EUR/USD closed in NY Friday at $1.2516, having seen lows in this session of $1.2495 before bouncing after taking out option barrier interest at $1.2500. Rate opened Asia at $1.2544, leaving a decent gap as it was marked higher following weekend press polls showing Greek pro-bailout party ND overtaking SYRIZA. This along with suggestions of Swiss imposing capital controls to deflect likely Chf inflows on a Greek EMU exit, suggestions of an EMU bank rescue fund and weak talk China looking at an infrastructure stimulus package, all aided a positive tone into the week’s trade. EUR/USD extended gains to $1.2598 in Asia, the market seen positioning for stops above $1.2625/30. Early Europe took over the bid baton and eventually lifted rate through resistance between $1.2600/20. However, rally faltered at $1.2624, and with Eurozone peripheral bond spreads widening, reversed the early rally and eased back to $1.2567. Rate was holding heavy into NY holiday afternoon trade, dealers aware of the NY-Asia technical gap.
EasyForexNews Research Team