Opened early Europe at $1.2395, EUR/USD closed in NY Friday at $1.2387 having rebounded from an initial NFP react low of $1.2219 to a high of $1.2392, settling between $1.2368/88 into the close. Risk appetite seen behind the euro move, boosted by the better than forecast US jobs data along with the initial react dip in EUR/USD offering a good exit point for euro shorts as well as indications that the Spain and Italy safety net has been strengthened. Early Asia Japanese buying of EUR/JPY tripped stops through $1.2410, then larger ones at $1.2425 were triggered on reported macro demand. Move met European offers sitting into $1.2445 which topped move at $1.2444 (61.8% $1.2693-1.2042). Reversal in EUR/USD was given added weight as Japanese exporters sold back into EUR/JPY post fix, taking EUR/USD to $1.2389 before settling between $1.2290/05 into Europe. Rate came under fresh sell pressure into Europe, LHS fix interest providing weight before semi official buys at $1.2352, then $1.2342, provided the counter before it recovered above $1.2370.
EasyForexNews Research Team