A slightly firmer start for the euro-zone currency this morning after it opened at $1.3688, in part due to weekend news of Matteo Renzi’s appointment as Italian prime minister. The news is seen as positive for the euro even though doubts remain over the legitimacy of the appointment. Euro-dollar broke above $1.3700 in early trade but gave back some of those gains to $1.3695 as Japanese markets got underway. Euro-dollar rebounded again as risk-on trades prevailed, this time breaking through rumored sell orders at $1.3717 and $1.3720 for a high so far of $1.3724. The pair eased a few notches as the US dollar clawed back some of the initial losses, with some dealers pointing to news of a Moody’s announcement concerning the German constitutional court’s ruling on the ECB’s OMT as a contributing factor also. Euro-dollar was last at $1.3715, off the early high but still above Friday’s night’s US close of $1.3693, with next resistance seen at $1.3735/40 ahead of further offers at $1.3750 and stops then at $1.3755.
