Opened early Europe at $1.2580, EUR/USD closed in NY at $1.2565, off late extended recovery highs of $1.2611, with rate already recovering from a pullback low of $1.2552 before early demand in Asia lifted the rate to $1.2578. EUR/JPY selling out of Tokyo countered this early move and eased rate back to $1.25525. Fresh dip demand gradually edged rate to session highs of $1.25887 (61.8% $1.2611-1.2552), trading around $1.2580 into early Europe. Profit take sales into early Europe squeezed rate back to $1.2557 before middle eastern demand emerged again. This buying seen in recent sessions and seen via a major French bank. Rate edged up to retest overnight highs only to be greeted by major Dutch name sales (euro diversification linked to EUR/CHF intervention buys by the Swiss authority, suggested). Rate eased to the $1.2555/60 before dropping to $1.2543 as Spanish 10-yr bond yields hit 7.0%. Recovery was restricted to $1.2560 with rate settling back round $1.2550 ahead of the NY open. Focus turns to US CPI and weekly jobless claims into the afternoon.
EasyForexNews Research Team