Opened early Europe at $1.2706, EUR/USD closed in NY at $1.2655 with rate marked higher late Sunday as exit polls suggested that the pro-bailout parties in the Greek election had secured enough seats to form a government. Rate edged on from below $1.2700 to an official open of $1.2720 with follow on demand taking the rate to highs of $1.2748. Rate drifted lower as the initial enthusiasm quickly faded, the market seeing the result more as dodging a catastrophe than outright optimism that all the Eurozone problems have gone away. Rate eased, initially meeting support into $1.2700 before extending to a session low of $1.2673. Positive Asian equity markets provided EUR/USD with a risk-on lift that took it to $1.2710 ahead of the European open. Decent two way business was seen into Europe, a further paring back of short positions noted though well supplied. Rate eventually squeezed lower, the break below $1.2670 then $1.2650, filled chart gaps as rate dipped to $1.26185. Rate was holding back at $1.2640 ahead of NY. Trade similar to last Monday post Spain bailout action.
EasyForexNews Research Team