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Euro in New York

Posted by Joseph Trevisani on Jan 16, 2015 4:55:00 PM

The euro opened at 1.1598 at 8:30 am in New York after selling from a high of 1.1649 in Europe pushed through support at 1.1640 after yesterday's historic move by the Swiss National Bank abandoning its eur/chf peg. 

Early American trading was relatively quiet, clustering between 1.1600 and 1.1550. U.S. CPI, industrial production, and capacity utilization were largely in line with forecasts and discounted.  

The euro headed lower on general dollar demand  as Treasury yields rose, the 10-year gained 12 basis points to 1.83 percent and after breaking through yeaderday's 1.1568 low continued to fall, finding support briefly at 1.1545.

The University of Michigan consumer sentiment report at 10:00 am underpinned confidence in the dollar, (January 98.2 vs. December 93.6) and along with expectations of ECB quantitative easing next week the euro fell sharply, pausing just above 1.1500. A second wave of selling triggered another round of stops, producing an low of 1.1460, an eleven year record.

The low quickly attracted profit taking and the rate climbed back to 1.1520 where it paused, then gradually carried higher, underpinned by euro-yen demand as oil and stocks rallied, to 1.1566, followed by a dip to 1.1536 and then a final rally to 1.1589

The euro closed at 1.1567.



Chart: Bloomberg

eur close jan 16


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