The euro opened the New York session at 1.3261 (8:00 am) after a quiet 1.3244-82 range during in Asian and Europe. From the open until just before 10:00 am NY was as circumspect with trading confined to 1.3262-73 range. Mortgage applications for the first week in September released before the open at 7:00 am, while much weaker than the prior week (-13.5% vs 1.3%) had no impact.
At 9:52 am the euro lunged higher through the September 9th high of 1.3281. On the tick chart the price moves from 1.3271 to 1.3291, on the minute chart the 9:52 am open was 1.3270 and the close 1.3281. The next minute moves from 1.3281 to 1.3291.There was some market talk of 1.3300 strikes forcing short coverge and coinciding with strikes in sterling and yen. Prices continued to surge touching 1.3301 at 9:57 am before meeting enough sellers to push back to 1.3286. But after a brief pause around 1.3290, eur/yen buying brought the rate through the figure to 1.3314. A comment from ECB governing council member Ardo Hansson that the bank had discussed another LTRO operation but that 'so far the policy package the ECB has now seems appropriate' dropped the euro again to 1.3290
Relatively good participation in the U.S. 10-year Treasury auction and lower rates, the benchmark 10-year closed down 5 basis ponts at 2.91% and a generally weaker dollar got the euro to 1.3325. That was the last gasp for the day, the euro edged lower to close at 1.3310, perhaps helped by a further comment from Hansson that the German economy would slow in the second half of the year.