The euro opened in New York at 1.2953 (8:00 am ET) and kept a tight 1.2940-1.2960 range for most of the morning session with a few spikes above 1.2960 and a few forays below 1.2940. It was not until London had gone home at noon that the euro made a quick drop to the session low at 1.2920. The run down was brief and the currency slowly climbed back to 1.2940 where the drop had started. Traders made no attempt to approach the 1.2900 level which had seen the only real action of the day about 90 minutes before the US open when stops over 1.2900 brought the euro from 1.2894 to the day's high at 1.2978 in just over 25 minutes. The euro was supported in afternoon trading by the generally weaker tone of the dollar prompted by lower Treasury yields and equity losses.
Chief Market Strategist