EUR/USD resumed yesterday’s rally this morning in Asia after the NY session saw a bout of dollar strength as offers in the $1.2810/15 proved resilient. Asia opened at $1.1736 after lows in NY of $1.2711, but consistent buying from leveraged names in a continuation of yesterday morning’s move saw a move back up to $1.2787, despite the World bank cutting global growth forecasts sharply from 3.2% to 2.5% this year and stating that Europe looks to already be in a recession. AUD lagged the EUR rally as profit takers emerged in the EUR/AUD, rising gently from $1.0371 to $1.0405. The cross picked up from A$1.2265 to A$1.2310 before easing back to A$1.2285. GBP was also held back by a firmer EUR/GBP; edging up to $1.5360 from $1.5329 as EUR/GBP picked up from stg0.8304 to stg0.8331. USD/JPY recovered from NY lows of Y76.55 to open at Y76.83 drifting off later to Y76.67 on dollar weakness. EUR/JPY edged up Y97.84 to Y98.05. EUR/CHF traded chf1.2090/2100 with USD easing to chf0.9461 from chf0.9495. Data calendar today is light in Europe ahead of tomorrow’s important Spanish and French auctions.
EasyForexNews Research Team