Opened early Europe at $1.2250, EUR/USD closed in NY at $1.2230, off post FOMC inspired lows of $1.2218 after the Fed disappointed markets with no new measures. Rate extended its recovery into early Asia to $1.2245 on react to a report in Sueddeutsche Zeitung suggesting the ECB today will unveil a two pronged plan to support the euro. However, early optimism quickly faded with rate slipping back to retest the NY lows before bouncing. S&P affirmed Germany’s AAA rating provided the lift to take rate through $1.2245, aided by Japanese demand for EUR/JPY. Rate touched a high of $1.2257 before easing to $1.2245 into early Europe. Rate squeezed back to $1./2235 into early Europe before stronger demand interest emerged. Middle eastern buys were cited for taking the rate through overnight highs, meeting initial resistance around $1.2260/65. Spanish auction passed without much pain and provided another lift, the demand taking the rate to an extended high of $1.2297 ahead of the NY open. Market retains an optimistic tone ahead of the ECB policy announcement.
EasyForexNews Research Team