Closed in NY Friday at $1.2972, just off extended rally highs of $1.2991. Japanese demand for euro-yen into the Tokyo fix sent this pair through Y107.00, with triggered stops extending move to Y107.14. This move acted to pull euro-dollar higher, though rate failed to gain same momentum to challenge its Friday high, the upside pressure fading around $1.2977. Euro-yen drifted lower post fix, with euro-dollar again tracking the move as it squeezed down to $1.2951 before settling around $1.2960 on the run into the European open. Bids are reported in place into $1.2950, with corporate interest reported sub $1.2890. Resistance noted from above $1.2990 through to barrier interest at $1.3000. A reasonably light data calendar (Germany Gfk at 1200GMT) though today’s Eurogroup meeting will grab the main focus with most expecting a favourable outcome to agreeing release of the next tranche of Greek aid, despite mixed weekend press reports concerning Greek haircuts. Catalonia vote at the weekend favoured pro-independence parties and could put a slight dampener on recent euro gains.
EasyForexNews Research Team