After getting smacked in Asia, EUR/USD has taken back some lost ground. Initial support from the German election in early Asia soon led to risk aversion as the Iranian situation took center-stage. More missile tests on the eve of talks with the US and other permanent members of the UN Security Council leads most to conclude Iran won’t be very conciliatory in Geneva on Thursday.That helped push stocks lower in Asia and sent EUR/US to fresh lows at 1.4561.
A rebound in US equity futures after a fresh round of mergers activity combined with solid buying by Asian central banks helped send the pair back up in its range.
Look for stops above Asian session highs at 1.4720 near-term. We trade now at 1.4660.
