Closed in NY Friday at $1.2160, off lows of $1.2244 as the euro was squeezed lower on the back of euro negative news. Rate was marked lower into Asian trade Monday, tripping stops through $1.2140 to $1.2115, as weekend press continued Friday’s euro negative theme, with concerns about Greece coming back to the fore as well as ongoing problems in Spain. This in turn begins to turn the spotlight on Italy due to knock on effects. Rate was sold to a low of $1.2103 in opening trade, as early traders attempted to take out barriers at $1.2100 in early thin conditions. However, strong demand ahead cushioned the move, with opening euro demand into the Tokyo open took the rate back to $1.2134 where it met decent supply. EUR/JPY sales took rate back under $1.2120, trading to $1.2106 before settling around $1.2110 into the European open. Traders will watch the reaction at the London open to the weekend reports, with the barriers at $1.2100 proving tempting, though we have a gap back to $1.2160 to fill. Bids remain in place to $1.2100 with stops below. Offers $1.2135, $1.2150/60.
EasyForexNews Research Team