Opened early Europe at $1.2355, EUR/USD closed in NY at $1.2332 after settling back following its rally extension to $1.2374. Rate crept up to $1.2337 in early Asia before Tokyo sales of EUR/JPY squeezed it down to $1.2325, retesting NY lows. Rate bounced as EUR/AUD demand re-emerged (was main driver in the euro’s recovery Monday), pushed up to $1.2349 before meeting resistance into $1.2350. Rate settled between $1.2340/50 into the Asian afternoon before a major French name emerged as a strong buyer ahead of the European open to take it up to $1.2356. Rate retained a firm tone into early Europe, supported by release of better than forecast French and German GDP data, with same French name a noted buyer through the early part of the morning, along with reports of real money demand. Break of $1.2362 took rate up to retest $1.2374, the eventual break here allowing for an extended move to $1.2386. Sovereign sales and macro supply countered the move, the corrective pullback to $1.2356 aided by release of weaker than expected ZEW data.
EasyForexNews Research Team