Opened early Europe at $1.2404, Closed in NY at $1.2435, after rate had spiked from post US NFP initial react lows of $1.2288 to $1.2459. Rate dipped to a registered Asian open of $1.2405 before quickly closing the gap as early market reacted to press reports suggesting Germany was softening its opposition toward European bonds/banking union (though with provisos). Rate lifted to a high of $1.2443 before faltering, the corrective pullback given added weight as reacted to an FT interview with the Cyprus cenbank governor in which he stated the country would seek EU aid if needed. Rate squeezed to a session low of $1.2386 before recovering to $1.2413 into early Europe. Recovery continued through a subdued European morning, UK closed Monday-Tuesday for Jubilee celebrations, the rate stepping its way to a recovery high of $1.2430 before meeting better resistance. Stronger offers are noted at $1.2440/50. Focus this week will be on Fed Bernanke Thursday for any hint, or not, of QE3. ECB’s rate decision Thursday, most expect no change but could announce fresh LTRO operations.
EasyForexNews Research Team