EUR/USD Opened early Europe at $1.2706 off lows at $1.2697, and was marked down at the Asia open to $1.2695. Rate was seen under pressure into Monday’s open as traders reacted to weekend comments suggesting IMF is losing confidence in Greece, as well as a German advisor reported saying that Greece has already defaulted. Stops through Y97.50 were targeted and triggered in EUR/JPY which took EUR/USD to early lows of $1.2666. Rate recovered on an FT item, which suggested that the UK has left the door open to increasing UK funds to the IMF for eurozone aid, taking the rate to overnight highs of $1.2715, overcoming Czech centrbank comments suggesting Greece should leave the eurozone. Demand increased into early Europe, real money and macros, the latter reversing overnight shorts, took rate on to an initial high of $1.2750, before extending recovery on to $1.2775. Dip back to $1.2750 attracted fresh demand that extended move to $1.2785. Recovery seen firm though meeting willing sellers.
EasyForexNews Research Team