Opened early Europe at $1.2287, EUR/USD closed in NY at $1.2290 after recovering from its Fed Bernanke react lows of $1.2189 seen as he failed to give any hints toward further stimulus, leaving market to wait for the next FOMC meeting Aug 1 and Jackson Hole address for clues. Move lower met strong demand from short term profit taking, as well as option gamma demand ahead of $1.2200 before stops were triggered up through $1.2250 which took rate back to $1.2298.. Asia took over the recovery baton and extended move to $1.2307, though move quickly faltered despite talk of larger stops above $1.2310. Rate drifted off the highs to $1.2276. Rate recovered to $1.2290 but strong demand for dollar-Swiss at Chf0.9770/65 provided a counter and took rate down to $1.2267. Recovery to $1.2285 then dip below $1.2280 met semi official demand that bounced rate up to $1.2295 but that Swiss linked sell interest capped move. Rate dropped lower on Merkel warnings over the European project, with longs squeezed which took rate down to extended lows of $1.2227 ahead of NY.
EasyForexNews Research Team