21 Aug 2013
EUR/USD weaker around 1.3380
FXstreet.com (Edinburgh) -The bearish sentiment surrounding the bloc currency is dragging the EUR/USD to fresh lows around 1.3380 on Wednesday, ahead of the FOMC minutes.
EUR/USD lower on Greece
Rumours that Greece might need a third bailout continues to heat up the FX markets today, following German finmin W.Schaeuble’s comments on Tuesday, assessing that the Hellenic Republic will need another bailout apart from the rescue loans aimed to the 2010-2014 period. In the opinion of Stephen Gallo, Strategist at BMO, “Earlier episodes of bond market volatility have not managed to drag the EUR lower in a sustainable way yet because they’ve not been large enough, rapid enough or persistent enough. The defence barrier created by the ECB’s promise to execute OMTs last year is still incredibly thick. Still, when other FX flows fade away, a slowing of Fed balance sheet expansion is a net negative for the EUR”.
EUR/USD relevant levels
The pair is now losing 0.17% at 1.3393 with the next support at 1.3338 (MA10d) ahead of 1.3323 (low Aug.20) and then 1.3314 (low Aug.19). On the flip side, a break above 1.3453 (high Aug.20) would open the door to 1.3456 (high Feb.14) and finally 1.3481 (76.4% of 1.3711-1.2740).
EUR/USD lower on Greece
Rumours that Greece might need a third bailout continues to heat up the FX markets today, following German finmin W.Schaeuble’s comments on Tuesday, assessing that the Hellenic Republic will need another bailout apart from the rescue loans aimed to the 2010-2014 period. In the opinion of Stephen Gallo, Strategist at BMO, “Earlier episodes of bond market volatility have not managed to drag the EUR lower in a sustainable way yet because they’ve not been large enough, rapid enough or persistent enough. The defence barrier created by the ECB’s promise to execute OMTs last year is still incredibly thick. Still, when other FX flows fade away, a slowing of Fed balance sheet expansion is a net negative for the EUR”.
EUR/USD relevant levels
The pair is now losing 0.17% at 1.3393 with the next support at 1.3338 (MA10d) ahead of 1.3323 (low Aug.20) and then 1.3314 (low Aug.19). On the flip side, a break above 1.3453 (high Aug.20) would open the door to 1.3456 (high Feb.14) and finally 1.3481 (76.4% of 1.3711-1.2740).