The pair opened at $1.3801 after climbing to a high of $1.3826 last night in the US. It started the Asian day wallowing in a narrow range, pulling back from an initial peak of $1.3804 to $1.3788 soon after stock markets in the region opened, and then extending the lows to $1.3785 as risk appetite deteriorated. Some dealers also said euro-yen weakness following the morning losses in Japanese stocks also ran against the euro. Euro-dollar consolidated just under $1.3800 for the next few hours, and found little direct interest with minor support at $1.3775 appearing likely to hold. Euro-dollar however received a strong lift in the early afternoon as market chatter then resumed again oflarge US dollar selling by an Asian central bank, which yesterday was believed to have been behind the pair’s move through $1.3800. Euro-dollar spiked to $1.3810 and then extended that to a $1.3832 high as the dollar selling spilled over to hit sterling and euro-sterling cross. Euro-dollar eventually stabilized and was last at $1.3820 ahead of German Ifo and UK GDP data due ahead during the European session.
