Euro was defensive ahead of the US session with soft European PMI data adding weight, and the euro wasted little time in stretching to fresh lows for the session as bids ahead of $1.2600 were filled. With stops sub $1.2590 a nearby target, euro extended to $1.2585 in early going around the ECB fixing but recovered to $1.2605 area ahead of option expiry. Weaker than expected ISM data, sub 50 reading, drove risk-aversion and dollar weakness, resulting in a lower euro with prints to $1.2568 before a base was found. Modest recovery stalled at $1.2592 area and capped into midday, euro finding a base near $1.2570. The balance of the session was contained inside $1.2570/95 with euro ending near $1.2580.
EasyForexNews Research Team