Closed in NY at $1.2757 after correcting back from an afternoon high at $1.2803 to $1.2755. Rate dipped to retest $1.2755 before slowly edging higher, the rate meeting initial resistance at $1.2770. A stronger recovery into Asian afternoon trade gained an added boost on reported comments from the IMF’s Zhu that the world should have confidence in the euro, strongly supports the ECB bond buying programme. Rate spiked to $1.2794, squeezing out minor stops along the way, but move met decent US name sell interest that capped, then reversed the rate lower. Euro-dollar eased to $1.2770, getting an added squeeze down to $1.2764 as early Europe showed influence. Trade conditions were again described as quiet/subdued through the overnight session with attention remaining focused on events later in the week. German Constitutional Court ruling on ESM expected Wednesday (though could be a further delay), Dutch elections then US FOMC announcement Thursday. Eurogroup Friday. Offers remain toward $1.2800, more $1.2820 to $1.2850. Stops $1.2855. Bids $1.2750 to $1.2710, $1.2700 stops.
EasyForexNews Research Team