Closed in NY at $1.2504, bouncing from $1.2470 after the London fixings. The expected downgrade of 28 Spanish banks by rating agency Moody’s shortly after the NY close had little reaction as traders adjusted positions and stop buys developed ahead of Asia. The pair headed higher in early dealings and flushed some stops through $1.2520 to print 1.2524. Profit take sales eased off highs and the pair ground lower through a quiet Asian session to $1.2510, extending losses to $1.2495 ahead of Europe. Month end flows suggest EUR/USD demand but volumes expected light, traders say. Reported sovereign demand seen into $1.2480, stops set through $1.2470 ahead of technicals at $1.2464 from the 61.8% retracement of $1.2288 – $1.2748. A deeper move opens more sovereign demand at $1.2450 ahead of barrier protection at $1.2425. Light data calendar today in headline driven markets with all eyes on Thursday’s European summit.
EasyForexNews Research Team