Opened early Europe at $1.2600, closed in NY at $1.2440, rate recovered from $1.2414 lows in late trade. The euro opened flat before spiking in Asian afternoon trade, as risk appetite picked up in the wake of comments from EU officials. Rate moved from $1.2450 to $1.2628 and triggered a number of stops as headlines broke that a deal had been reached on a number of issues, which included a direct re-cap of banks and ESM seniority. Reported macro supply eased off highs and the euro extended losses through $1.2600 to $1.2580. Into Europe and EUR/USD nudged higher to $1.2608, before running into Asian sovereign supply, rate pressed through $1.2600 to $1.2585 and remained on the defensive. The pair ground lower amid light flow aided by headlines from Merkel that said each ESM bank recapitalisation will need unanimous approval. Dip demand lifted 20 pips and the rate settled around $1.2570 ahead of NY
EasyForexNews Research Team