Opened early Europe at $1.2565, EUR/USD closed in NY at $1.2570, off recovery highs of $1.2587 as risk was given a boost on market chatter of global stimulus plans. Rate initially squeezed down to $1.2565 before getting a fresh lift on release of stronger than forecast Australian employment data. However, despite the decent demand, and the tempting target of stops placed above $1.2600, the rate struggled ahead of the NY high, topping out at $1.25859 as it met decent supply, along with EUR/AUD sales. Rate drifted lower through the balance of the overnight session, touching a low of $1.2558, trading around $1.2564 into early Europe. Rate extended recovery to $1.2570 in early Europe before turning lower as risk-on trades were pared back as EMU periphery bonds spreads widened. Rate squeezed down to $1.25402 before meeting middle eastern and Asian sovereign demand. Rate recovered, aided as bond spreads moved in, and with Spanish and French auctions causing no negative surprises allowed rate to stretch back to $1.2587 ahead of NY, meeting semi official sales.
EasyForexNews Research Team