Closed in NY at $1.3455, off traded highs of $1.34869. Rate extended its recovery off late NY session pullback lows of $1.3444 to $1.3480 in early Asia, as rate was lifted by strong demand for EUR/JPY out of Tokyo. Negative react to the Australian Labour Party leadership result (Gillard fended off Rudd), as well as black-box sales in EUR/JPY (though some also linking sales in this pair to a story that N.Korea had deployed multiple rocket launchers), saw EUR/USD drift off to $1.3445/40, with market then subdued for a while during the Oscar results. Continued selling resumed to take rate to $1.3435 in Asia, $1.3432 into early Europe. Rate currently holds heavy in early European dealing, though demand in the area between $1.3435/30 so far able to buoy. A break to expose stronger demand between $1.3420/00. Offers remain into $1.3480, a break to expose Friday’s high at $1.34869 with barrier interest at $1.3500 being mentioned. Stops noted above. Greece moves back into focus, though today’s German vote for second bailout expected to pass. ECB LTRO on Feb29 looms on the horizon.
EasyForexNews Research Team