Opened early Europe at $1.2502, EUR/USD closed in NY at $1.2452, the rate recovering off a late pullback low of $1.2425 in line with US equities. A continuation of this recovery faltered as Moody’s announced a downgrading of Austrian banks, then six German banks, on both announcements rate dipped to $1.2440 where it met decent demand before pushing higher. Release of stronger than expected Australian GDP data provided a boost to risk, though sales of EUR/AUD provided a partial counter as EUR/USD was pulled higher by the AUD/USD rally. Once EUR/AUD sales faded the rate was able to move through $1.2500, despite sales from two Asian sovereign names, with Russian buying cited for the move above $1.2510 as rate extended to $1.25176. Rate dipped back to $1.2478 into early Europe on Russian supply, only to bounce above the figure as it was pulled along by cable’s recovery, while EUR/GBP met support into stg0.8080. Move above $1.2520 met reported offers before rally faded at $1.25286. Rate eased off highs, meeting support around ahead of NY.
EasyForexNews Research Team