29 Aug 2013
Flash: EUR/USD in trouble? – TD Securities
FXstreet.com (New York) - The EUR/USD is under pressure this morning with safe haven flows and the Fed-tapering theme continuing to benefit the USD, suggests the TD Securities Team.
Key quotes
Higher German unemployment was the only notable fundamental development overnight, and did not help the EUR’s cause, but the flood toward the USD had already seen EUR/USD break below the 1.33 handle earlier on.
“Short-term German-US spreads also continued to widen for a fourth consecutive day, corroborating pressure on the FX spot rate. Looking at the historical relationship of the rate spread and the spot rate over the past two years, a move to 1.30 for EUR/USD would not be out of line.”
“On the charts however, the 1.3190/3200 area is likely to provide decent support in the near-term.”
Key quotes
Higher German unemployment was the only notable fundamental development overnight, and did not help the EUR’s cause, but the flood toward the USD had already seen EUR/USD break below the 1.33 handle earlier on.
“Short-term German-US spreads also continued to widen for a fourth consecutive day, corroborating pressure on the FX spot rate. Looking at the historical relationship of the rate spread and the spot rate over the past two years, a move to 1.30 for EUR/USD would not be out of line.”
“On the charts however, the 1.3190/3200 area is likely to provide decent support in the near-term.”