Opened at $1.3065 this morning in Asia after falling from $1.3191 to $1.3043 in NY last night, as risk aversion returned following talk of further delays in the Greek debt outcome and growing pessimism that it will be unable to fulfill its austerity obligations. Comments from EU’s Juncker that he was hopeful an agreement would be reached on Monday have failed to add any confidence to the single currency which fell to its lows following dovish FOMC minutes. The Euro faired no better this morning in Asia following Moody’s reviewing 17 global banks for possible downgrades and a weak China FDI; falling to lows of $1.3007 on heavy EUR/JPY sales and EUR/USD sales from a major US bank. Talk of very large bids just ahead of $1.3000 led a bounce back to $1.3033, but the pair remains under pressure sitting around $1.3015. Large stops are reported on a break of $1.3000 with more down through $1.2980. there is also talk now of bids ahead of the $1.3000 level from Asian sovereigns as well as demand from Middle Eastern and Russian names.
EasyForexNews Research Team