9 Apr 2014
EUR/USD clings to 1.3800
FXStreet (Edinburgh) - The single currency is now creeping back to the vicinity of the 1.3800 handle, with the EUR/USD bouncing off session lows near 1.3780.
EUR/USD follows risk appetite
The positive momentum of the risk appetite continues to be the main force bolstering the pair so far, reverting 3 consecutive weeks of losses after ytd peaks near 1.3970 (March 13th). Data-wise, spot quickly shrugged-off a German trade surplus below estimates, and looks to the FOMC minutes due today as the main catalyst in the very near term. According to Camilla Sutton, Chief FX Strategist at Scotiabank, “ECB rhetoric seems to be relatively unified; essentially that there are no signs of deflation, that low inflation is self-fulfilling and there are still standard policy tools to be used before turning to unconventional policy”.
EUR/USD levels to consider
As of writing the pair is up 0.02% at 1.3801 with the next up-barrier at 1.3812 (high Apr.8) ahead of 1.3820 (high Apr.2) and finally 1.3827 (high Mar.26). On the downside, abreak below 1.3738 (low Apr.8) would aim for 1.3731 (55-d MA) and then 1.3699 (21-w MA).
EUR/USD follows risk appetite
The positive momentum of the risk appetite continues to be the main force bolstering the pair so far, reverting 3 consecutive weeks of losses after ytd peaks near 1.3970 (March 13th). Data-wise, spot quickly shrugged-off a German trade surplus below estimates, and looks to the FOMC minutes due today as the main catalyst in the very near term. According to Camilla Sutton, Chief FX Strategist at Scotiabank, “ECB rhetoric seems to be relatively unified; essentially that there are no signs of deflation, that low inflation is self-fulfilling and there are still standard policy tools to be used before turning to unconventional policy”.
EUR/USD levels to consider
As of writing the pair is up 0.02% at 1.3801 with the next up-barrier at 1.3812 (high Apr.8) ahead of 1.3820 (high Apr.2) and finally 1.3827 (high Mar.26). On the downside, abreak below 1.3738 (low Apr.8) would aim for 1.3731 (55-d MA) and then 1.3699 (21-w MA).