Opened early Europe at $1.2516, 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. Into Europe early macro supply pressed through $1.2500, before running into fast money bids and recovering off lows. Middle-eastern demand/leveraged short covering extended gains to $1.2530. Rate was unable to maintain gains and ground lower, reported large fund sales eased back through $1.2500. Large cross sales added weight to $1.2482, before meeting sovereign demand and lifting to $1.2488 where the tone remains heavy ahead of NY.
EasyForexNews Research Team