The euro started the US session (8:00 am ET) at 1.3093 and quickly trigged stops just above 1.3100, the European high, topping out at 1.3116 less than 15 minutes into the session.
With the stops executed the euro retreated and picked up some momentum from a status quo US pending home sales figure (March 1.5%, expected 1.0%, February revised to -1.0% from -0.4%) combined with a report from Bank Of Italy stating corporate bad loans levels were rising. This squeezed the market down to a session low of 1.3077. The euro then traded sideways until a very weak April Dallas Fed Manufacturing Outlook Index (-15.6, expected 5.0, March 7.4) and a positive tone in the equities helped the euro recover by 11:27 am to 1.3113 . Offers from Asian sovereigns at this level capped the rally and themarket returned to the low 1.3080s briefly after Deutsche Bank announced it intended to raise 2.8bn euro in new capital whcih sent its shares 2.5% lower initially before teh united currency consolidated between 1.3090-1.3100 for the remainder of the session. Traders are awaiting the results of the FOMC meeting on Wednesday and the ECB meetings on Thursday.
Dollar-yen opened the US session at 97.87 (8:00 am ET) and made the session's low about half an hour later as euro-yen was sold in tandem with euro-usd. Strong demand from a US investment institution helped force the currency back to 98.20, the session and day's high just as London closed at noon. In the afternoon profit taking and dollar weakness took the market back down to 97.91 before sliding to a tight range near 97.80 for the balance of the afternoon.
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