Opened early Europe at $1.2510, closed in NY Wednesday at $1.2470 and recovered from lows of $1.2445 after the London fixings. The EUR opened higher and lifted to $1.2480 in Asia, although volumes were very light, with many players on the sidelines ahead of the EU leaders summit starting later today. Demand from Fund accounts and US names lifted the pair into the Tokyo fix, rate extended gains on strength in the aussie and flushed some light stops through $1.2500/10 to highs of $1.2524. Into Europe and the pair was unable to push higher with reserve managers sitting on $1.2530 offers. Early Swiss name supply eased to $1.2510, before grinding through $1.2500 amid light flow. Headlines from a German government source that summarised there would be no decisive actions taken at the key EU summit pressed euro lower, triggering a number of stops to $1.2407 lows. Traders flashed German names added weight on the move through the $1.2440’s. Profit take demand lifted off lows and aided by semi official demand recovered to $1.2435 and sit heavy ahead of NY.
EasyForexNews Research Team