Opened early Europe at $1.2530, EUR/USD opened in Asia around $1.2526, easing off a late Wednesday recovery high of $1.2545 after posting session lows of $1.2508. Early CTA name sales squeezed rate to extended lows of $1.2512 before EUR/JPY demand into the Tokyo open countered and edged the rate to $1.2533. Upside momentum quickly faded with rate then drifting back to $1.2523, though traders did note North Asian demand interest emerging into the pullback from around the $1.2525 area which bounced rate to session highs of $1.2538. Markets in Asia were generally subdued following on from the US July4 holiday, with market focus turning toward today’s rate decision from the ECB. Most expect some easing in the interest rate though forecasts split between 25bps and 50bps, with attention seen on action in the deposit rate. Rate was trading around $1.2525 into early Europe with middle eastern/Asian demand cited for the push back toward overnight highs, before settling back between $1.2515/30. Strong supply through $1.2520 weighed and the rate printed $1.2498 lows to sit heavy.
EasyForexNews Research Team