Opened early Europe at $1.2285, EUR/USD closed in NY at $1.2280, after recovering from session lows of $1.2217 to session highs of $1.22878. The upside correction was seen driven on a mix of Asian sovereign, leveraged and macro demand. Rate continued its late NY ease into Asia, marking early lows at $1.2275 before a US name took rate up to $1.2298 before momentum faltered. Rate then settled around $1.2290 through the balance of the session, opening Europe around $1.2285. Asian sovereign sales around $1.2290 capped early recovery attempts into Europe but pullbacks remained shallow. A EUR short squeeze, driven by a US name, took the rate through stops at $1.2305/10 which took rate on to $1.2325. Move met decent supply above $1.2320 from a mix of names, Asian sovereign, Dutch PB and middle east mentioned, which pressed rate back below $1.2300. Major Asian sovereign sales emerged ahead of a disappointing Spanish bond auction to take rate to extended lows of $1.2263. Rate was holding back above $1.2270 in late morning trade.
EasyForexNews Research Team