The euro opened New York trading at 1.3485 (8:00 am), following a flat Asian session and volatile European market.
German September IFO data (4:00 am EDT) was weaker than predicted (business climate 107.7 expected 108.0, current assessment 111.4 vs. 112.5, expectations 104.2 vs. 104.0) and concerted selling drove the euro from 1.3516 before the release to 1.3494 within minutes. This was followed by a brief bounce back to 1.3510 before offers returned and pushed the currency down in steps over the next two hours to 1.3475 aided by heavy euro/yen sales.
The beginning of the U.S. market saw a moderately bid dollar which sank the euro to the day's low of 1.3465. But there was no momentum at the bottom and, helped by a rebound from the IFO sell-off and remarks from Benoit Coeure, ECB board member that, "There is a clear commitment by the Governing Council of the ECB to ensure that liquidity will remain ample in the euro zone", and that he expects rates to remain low for an extended period, the euro had fought back to 1.3496 by mid-morning.
The Case/Shiller Index of home prices for July (y/y 12.39% vs. 12.40%) at 10:00 am showed the strongest gain in yearly home prices since the housing bubble days of 2006 and gave the dollar a quick boost. Short covering in the yen cross brought the euro back to 1.3490 but 1.3500 resistance was not tested and in the afternoon the pair drifted back to 1.3470 where it closed.