Euro opened at $1.3785 at the bottom of range as the euro continued to feel the effects of ECB Draghi’s dovish remarks. The weak euro tone persisted in early NY trading as euro-yen supply pressured the downside, forcing a break of the $1.3775 Apr30 low, basing at $1.3770 as euro-yen just managed to hold the Y140.00 level. The euro’s bounce coincided with remarks from ECBs Likanen that they “will decide in June, take decision as normal”, which was taken by some that a rate cut is not a done deal, although he added “Draghi’s comments show our common view”. A relief rally extended eventually to $1.3794, but higher levels gave traders better levels tore-establish euro shorts, and led again by euro-yen it headed lower. Larg eoption expiries at $1.3780-$1.3800 contained until 10 a.m. NY, but another attempt to push euro-yen below Y140.00 led to additional euro sales, and after pausing at $1.3760, extended to anintraday low of $1.3754 as euro-yen dipped below Y140.00. The sell on rally trend persisted, capped at $1.3771, which if closes below represents a weekly bearish reversal as pointed out by CitiFX Tech.A weak close saw the pair grind to a $1.3745 low and traded at $1.3755 et 1540.
