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Euro in New York

Posted by Joseph Trevisani on Jul 14, 2014 6:49:00 PM

The euro opened in New York at 1.3627 following a narrow and by now standard minimalist Tokyo and London range (1.3598-1.3640).  

From the Asian start in Auckland and Sydney through Tokyo to the London open the range was 10 points 1.3598-1.3608. London's first take was down to the prior low but the approach to the Asian high generated a different response. The first pop to 1.3611 faded, but the second about 15 minutes later led to a surge higher, rapidly through the old top at 1.3611 and then climbing gradually to 1.3632. There was a brief bout of profit taking lasting about 10 minutes which ended in a final spurt to 1.3640.  Last week's Wednesday and Thursday highs at 1.3649 and 1.3651 were unthreatened.  The pair dropped back to 1.3620 and traded between there and 1.3631 until the New York open. 

EMU industrial production for May at -1.1 percent, slightly better than the Bloomberg survey expectation of 1.2 percent was unremarked as individual national statistics has already been reported last week. 

The U.S. market pressed down to 1.3617, the 21 day moving average, about mid-morning, which held, giving the euro its final run back to 1.3628. 

ECB President Draghi' speech to the Committee on Economic and Monetary Affairs of the European Parliament in Strasbourg in which he said that a strong euro could be a problem for the EMU economic recovery produced a flurry of activity. The euro took a quick 5 point (yes you read that correctly 5 point) drop to 1.3609, the New York low, traded between there and 1.3615 for the next 40 minutes and then hiked back to 1.3620.  From then to the close the range was 1.3618-1.3622. 

Tomorrow's events are retail sales for June at 8:30 am and the Federal Reserve Chair Janet Yellen's first of day of Congressional testimony before the Senate Banking Committee at 10:00 am. 

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Chart: Bloomberg

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