EUR/USD closed in NY at $1.3447, recovering back from pullback lows of $1.3444 after posting highs of $1.34869. Rate extended recovery to $1.3480 in early Asia, as rate was lifted by strong demand for EUR/JPY out of Tokyo. Black-box sales of EUR/JPY (though some also linked sales to a report that N.Korea had deployed multiple rocket launchers), saw EUR/USD drift off to $1.3445/40. Further sales took rate to $1.3435 in Asia ahead of the European open. Fresh demand into Europe, driven again by EUR/JPY buying, took rate up to a recovery high of $1.3465 before momentum faltered. US investment houses were then noted sellers, taking the rate to $1.3420 before meeting a mix of semi official demand and leveraged profit take covering. However, recovery efforts remained shallow with rate eventually breaking below $1.3420 and was seen grinding its way into reported demand between $1.3420/00, touching a low of $1.3406. Cross plays were again seen as the main driver, with EUR/JPY dictating a lot of the morning moves.
EasyForexNews Research Team