Opened early Europe at $1.2916 EUR/USD closed in NY at $1.2945, after recovering off session lows of $1.2898 to $1.2955. Rate marked Asian session highs at $1.2946 in early trade before turning lower, the move to session lows of $1.2911 given an added shove as PBOC fixed yuan at 6.3115, up sharply from Tuesday’s 6.3001. Rate edged back to $1.2930 before drifting lower again ahead of the European open. Early Europe retested the Asia low, tempted by CTA stops sub $1.2910, but strong demand on EBS at $1.2905/03 prompted a reversal. Middle east buying, followed by leveraged demand, took rate to $1.2943 before momentum faded. The corrective pullback gained pace on talk a major eurozone bank may look for funding. Large bids remained between $1.2905/00 but they soon gave way on heavy French sales, with stops through $1.2880 then $1.2860 providing the momentum to take out the barrier at $1.2850. Rate touched $1.2848 before edging back to $1.2880. French bond auction went ‘OK’ but a second wave of selling knocked rate down to $1.28302. Corp buying edged it back above $1.2850.
EasyForexNews Research Team