Opened at $1.2578 after $1.2433/1.2628 overnight range, EUR had gapped higher in Asian dealings on apparent progress at the EU Summit, forcing a short-covering scramble ahead of quarter-end, but pair had deflated from highs after talk of Asian sovereign sales. An early lift in US hours saw prints to $1.2695 as US names lifted EUR/CHF and euro eased back to $1.2670 before launching higher again around the ECB fixing. With short term spec and IMM names buying, and thin conditions providing little liquidity, euro romped through the overnight high to trigger stops in a rally that stretched to $1.2693 before stalling, talk of hefty supply and barrier protection at $1.2700 capping for a shallow dip to $1.2655 amid only modest flows. Late morning into afternoon saw euro contained inside $1.2645/70 ahead of the weekend.
EasyForexNews Research Team