Closed in NY at $1.2853 after rate had been pressed down to session lows of $1.2830 before it recovered to $1.2880 then drifted off into the close. Euro came under pressure on the fall out from the Cyprus agreement, the market pegging selling to any piece of negative news with comments from Eurogroup head Dijsselbloem suggesting that the action for Cyprus provides a template for future bail-ins, later denied, providing the last downside push then recovery. Rate touched an early low at $1.2844 in Asia before slowly recovering through the session to an initial high of $1.2871 before getting a late session boost to $1.2878. This move higher was led by euro-yen as the Japanese currency softened on reported comments from new BOJ head Kuroda suggesting a scrapping of the bank note rule (bank note rule is the policy where BOJ keeps total JGB purchased under the total amount of bank notes in circulation). A reasonably light data calendar in Europe today though attention will remain on Cyprus fall out, the Central Bank announcing late last night that all banks will remain closed until Thursday. Offers $1.2880/85, a break to open a move toward $1.2900 then $1.2920 with stops above. Support seen into the Asia low at $1.2844 ahead of $1.2830.
EasyForexNews Research Team