Dollar demand in early Europe extended the....>

FOREX: Dollar demand in early Europe extended the corrective pullback away from

Eur/Usd's Asian high of $1.1877 to $1.1863, holding just off its opening Asian

low of $1.1862. Traders reported that hedge fund interest had begun to show Usd

appetite though so far meeting real money supply. Rate dropped from recovery

highs of $1.1874 to $1.1849 as USD strengthened and the NY session got underway.

Eur/Usd continued lower and printed intra-day lows of 1.1801 at the time of

writing. Persistent supply via the crosses (Gbp-Jpy/Eur-Jpy) pressured Usd/Jpy

to Y112.48 in early Europe. In the NY session the pair  gained all of the

earlier losses and more to print intra-day highs of Y112.87 before fading.

Eur/Jpy was pushed to lows of Y133.05 despite the release of well received

Services PMI across Europe (Germany the only miss). For Aud/Usd the European

morning session was a quiet affair, trade volumes remained light and the pair

stayed within a narrow range ($0.7636-52). As the dollar gained a fresh bid tone

across the board in NY, Aud broke the narrow European morning range and pushed

lower all the way to $0.7597.