The euro opened the US session at 1.3048 (8:00 am ET) after trading in a 1.3032 to 1.3117 range overnight. The pair was sent lower just after the New York open by a wave of euro-yen selling prior to the weak March US existing home sales (-0.6%, expected +0.4%, February revised to +0.2% from +0.8%). The euro reached bottom at 1.3015, 9:35 am, just after the equities began and was headed higher when the home sales numbers were released at 10:00 am ET. Euro-yen demand supported the euro after a brief dip below 129.00 but the pair struggled and did not get back over 1.3050 until mid-afternoon, making a brief foray to 1.3069 about an hour before the close.
Dollar/yen opened the US session at 99.73, after trading in a 99.59 to 99.90 overnight range. The pair, along with euro-yen, saw early selling, with dollar-yen testing lows near 99.48 before halting just before the 10:00 am ET existing home sales release. A weaker than expected number (-0.6%, expected +0.4%) weighed on risk sentiment and any yen shorts and the dollar/yen fell to lows near 98.98 (and the cross to 128.91) before real money demand helped the pair to recover. In early afternoon action dollar/yen tried in vain to hold above 99.40, as the cross flirted with 130.00, and then both drifted lower into the close.
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