Opened early Europe at $1.2125, EUR/USD closed in NY at $1.2120 after rate had recovered off session lows of $1.2067 to $1.2145 on a mix of reported middle eastern demand and short covering. Rate had dropped back from $1.2138 to $1.2108 in late NY/into Asia as markets reacted to Moody’s cutting its outlook for Germany, Netherlands and Luxembourg to negative. The pullback was seen cushioned by the unwinding of EUR/AUD shorts, with Australian bank buys lifting the rate to $1.2135 before momentum faded. Another dip below $1.2120 again met strong demand, with recovery this time given an added boost by release of better than forecast HSBC China PMI data. EUR/AUD touched a session high of $1.2138 before meeting decent supply ahead of $1.2140. Rate eased to $1.2110, settling around $1.2130 into Europe. Rate came under fresh pressure into early Europe, extending lows to $1.2104 but demand into $1.2100 remained in place and cushioned. Rate recovered above $1.2130 before dropping to $1.2092 where it met Asian sovereign demand which edged it back above $1.2100 ahead of NY.
EasyForexNews Research Team