Opened early Europe at $1.2348, EUR/USD closed in NY at $1.2365, after a dollar demand end month fixing had taken rate to extended lows of $1.2336. Rate came under pressure into early Asian dealing, the release of weaker than forecast China PMI data taking it to overnight lows of $1.2324. Rate recovered to $1.2355 before settling between $1.2340/50 ahead of Europe. Rate got an early lift in Europe on short covering, edging to $1.2364 before momentum faltered. The corrective pullback was given adeded weight on release of weak Spanish PMI data, taking the rate down to retest overnight lows. Rate recovered, getting an added lift to $1.2355 as stronger Eurozone economies released improved PMI data versus flash estimates. However, recovery proved short lived, the rate breaking below $1.2324 to extend lows to $1.23121 as stops below $1.2320 were targeted and triggered. Recovery to $1.2330 proved laboured but some suggest we could see short covering adjustment ahead of US NFP data, with stops above $1.2370 being noted.
EasyForexNews Research Team