The euro opened at 1.2781 at 8:30 am in New York near the top of the Tokyo/London 1.2732-1.2790 range. Despite EMU economic concerns and the the pending ECB stress tests of European banks there was no selling energy and the bottom turned quickly into a run 40 points higher.
Early New York, however, headed lower following comments from ECB board member Vitor Constancio that euro zone monetary policy needs to be very accommodative. The fall went no further than 1.2767 where demand drove it back to 1.2783 within 30 minutes.
The subsequent decline to 1.2755 was reinforced by statements from the German and French Finance ministers to the effect that the German economic situation is becoming more difficult and the euro zone economy is much weaker than expected.
The euro gradually recovered in the U.S. morning rising to 1.2789 at the London close. U.S. equities had opened lower but the slow return of the stocks seemed to ease pressure on the
The euro was a choppy in the New York afternoon but found support 1.2780, gradually rising back to the European high of 1.2790 but then it fell off again. Remarks from Bundesbank board member Joachim Nagel that that low rates for too long risks fuelling asset bubbles, pushed the euro to a quick break at 1.2807 and then to the top at 1.2817.
The euro closed at 1.2800