Euro/dollar opened the New York session at 1.3281 (8:00 am ET) about mid-way in the day's 1.3232 to 1.3318 range. Despite the gradual rise in Asia and London, both markets had seemed reluctant to address 1.3300, the first NY move was down. Once bids at 1.3270 were completed, selling picked up perhaps encouraged by the better than expected NFIB small business report at 8:30 am and aided by rumored hedge fund sales, driving to the day's low at 1.3232. A quick rally brought the pair to 1.3275, a short drop to 1.3257, with little follow made it clear the sellers were done and the currency vaulted to 1.3316 in under twenty minutes. The rally was aided by a drop in US Treasury yields, the 10-year had reached 2.28 before falling back.
ECB Governing Board Asmussen said any Outright Monetary Transactions (OMT) will be sterilized as he appeared before the German Constitutional Court at Karlsruhe in defense of the ECB policy.