Closed in NY at $1.2972 after a fairly subdued US session as markets awaited the outcome of the Eurogroup meeting. A leaked report that a deal had been reached to cut Greek debt to 124% to GDP by 2020 sent rate up to an early Asian high of $1.3007, the move taking out barrier interest at $1.3000. A rival wire tried to dampen this early ‘leak’ by reporting that talks were ongoing and prompted a pullback to $1.2969. Confirmation of the Greek debt deal bounced the rate to a high of $1.3010 but momentum quickly faded as move ran into profit take sales. The corrective pullback was given added weight on euro-yen sales which took rate back to $1.2974. The dip again attracted demand interest which has since allowed rate to recover to $1.2990 ahead of the European open. Expect analysis of this overnight agreement to draw comment from various official sources. Current scenario looking to be a buy the rumour sell the fact as reaction to the agreement has so far been fairly muted. Bids $1.2950/40, more between $1.2920/00. Resistance $1.3010, with stops through $1.3010-25. Further offers $1.3030 and $1.3050.
EasyForexNews Research Team