Global Trading Review: Euro-Dollar
Mondays closing at the NYSE saw the euro-dollar finish up at $1.3620 after surpassing the day’s low point of $1.3598. at one point the Euro peaked at $1.3640 before slowly falling again to $1.3608. The rate rallied toward the New York closing just ahead of the Asian open.
During the relatively quiet Asian session, the rate hovered between $1.3617-27 until falling to a session low of $1.3613 in the afternoon. The Euro recovered to meet its opening level before Europe. Pressure from the market forced the rate down to $1.3605 before it rose again to $1.3628 relating to a possible fix from the French.
The rate fell again to $1.3605 as UK SPI data entered the scene and sun the Euro-Sterling. Lows fell further to $1.3595 as German ZEW data emerged weaker than forecasted. Second wave sales pulled things down further to $1.3587 into the late morning. Ahead of the NY opening, concern over the Portuguese BES continued to mount while attention turns toward the Yellen Testimony scheduled for 1400GMT.
Confidence remains high in the Euro-USD exchange and the pair will continue to be the highest traded currency pair in most markets. From a binary standpoint the pair is a solid choice because it is traded throughout the day and maintains quality liquidity, which in turn provides consistently good pricing for traders.