Opened early Europe at $1.2328, EUR/USD closed in NY at $1.2321, just off the lows of $1.2317 seen after the USD got a general boost on the back of better than expected US retail sales data. Rate squeezed down to retest the NY low into early Asia, again basing here before picking up demand into Tokyo trade. A mix of EUR/AUD demand and EUR/JPY positioning for expected demand into the Tokyo fix (Goto-bi day) saw rate edge to $1.2332. EUR/JPY slipped back post fix and took EUR/USD with it, settling between $1.2320/30
for the balance of the session. Continued EUR/AUD demand into Europe allowed EUR/USD to retest the overnight high, extending the recovery to $1.2344 before momentum faltered ahead of stronger sell interest placed into $1.2350. Rate drifted lower, picking up momentum below $1.2330 before meeting fresh demand around $1.2320. Rate recovered above $1.2330 in late morning trade. Focus will turn to US inflation and Empire State survey data at 1230GMT to provide direction with focus on US yields to drive.
EasyForexNews Research Team