Opened early Europe at $1.2613, EUR/USD closed in NY at $1.2578, off late session extended lows of $1.2557, the rate then continued its recovery through Asian trade to an overnight high of $1.$1.2617. Move up was aided on a mix of short covering, prompted in part by position adjustment ahead of the two-day FOMC meeting, as well as market reaction to positive comments from G20, a draft statement set out the EU’s aim of bringing about closer integration of the banking system as well as steps toward tighter fiscal coordination. Rate retained a bid tone into early Europe only to meet strong supply from a major Dutch name. Rate was knocked back to $1.2587 only to pick up fresh demand. Middle east demand was linked to the recovery, with rate extending its correction to $1.26209 only to meet another round of Dutch sales. Rate extended its pullback to $1.25691 before middle east demand emerged again to take it back to$1.2600. Release of much weaker than forecast ZEW data dropped rate to $1.2572 before bouncing back to $1.2620 where it again met Dutch supply.
EasyForexNews Research Team