EUR Trading Outlook
The Euro (EUR) more rating downgrades from banks to countries in recent days are adding sustained pressure to the EUR/USD which is likely to test 1.3000 in coming sessions. The Greece situation is also continuing to linger with concern that the politicians lack the will power to continuing pushing through tough austerity measures to an already suffering population. Recent GDP data suggests Greece is now in the grips of a severe recession. In US stocks, Weekly Jobless Claims forecast at 365k vs. 358k previously. Also Fed Chairman Ben Bernanke speaks.
The Euro (EUR) the EUR/USD staged a slight recovery in Europe after the German February ZEW survey improved to 5.4 vs. -21 previously. The Rally was short-lived as the Greece drama rolled on and the Moody’s downgrades encouraged fresh selling above 1.3200. In US stocks, DJIA +4 points closing at 12878, S&P -1 points closing at 1350 and NASDAQ +1 points closing at 2931. Looking ahead, Q4 EU GDP forecast at -0.3% vs. 0.2% previously. Also US FOMC minutes released from previous meeting where they extended low interest rate expectation period to late 2014.
The Euro (EUR) the 2 notch downgrade of Spain and 1 notch on Italy saw the EUR/USD test 1.3150 in Asia and break going into Europe on Tuesday. The Greece situation had only just started to stabilize and the new negative news may be too much for the recent rally to digest. In US stocks, DJIA +72 points closing at 12874, S&P +9 points closing at 1351 and NASDAQ +27 points closing at 2930. Looking ahead, January Retail Sales forecast at 0.7% vs. 0.1% previously. Also head, February German ZEW index forecast at -12 vs. -21.6 previously.
The Euro (EUR) the EUR/USD dipped under 1.3200 but found good support at 1.3160 and is currently tracking higher back towards 1.3300 as the successful Greece vote inspires fresh risk taking. In US stocks, DJIA -89 points closing at 12801, S&P -9 points closing at 1342 and NASDAQ -23 points closing at 2903. Looking ahead, January German WPI is forecast flat at 0.0% m/m.
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