EUR Trading Outlook
The Euro (EUR) the Euro was under pressure yesterday as the bulls ran out of patience and concerns about the timing of ECB/ESF bond buying dominated the headlines. EUR/USD found support at 1.2270 and closed at 1.2300 but is looking weak technically after failing at the 1.2440 level. The outlook is still subject to headline risk with daily commentary from ECB and EU officials moving the market.
The Euro (EUR) the EUR/USD is pushing back towards 1.2400 in gentle but bullish trade as hopes rise the ECB have the Euro crisis under control. News emerged overnight that the Troika inspectors will remain in Greece all of September and that the decision to give more aid will be made in October. Germany’s rating was confirmed at AAA by Fitch and helped to underpin the move higher.
The Euro (EUR) the EUR/USD retested Monday highs at 1.2440 before falling back in the US session while we wait for more information from the Eurozone. Commentary overnight including Junker stating that a Greek Exit would be manageable but carry enormous risks. Other talk in the market was that Spain would not be asking for an additional bailout above the one already offered for its banking sector.
The Euro (EUR) the EUR/USD hit day highs in early Asia and was not able retest these again on the day as profit takers dragged the pair back to 1.2350. The US session did see another rally and we finished well supported just under 1.2400. EUR/GBP is edging closer to 0.8000 and could test the big figure in coming sessions if the sentiment continues to improve.
The Euro (EUR) the ECB hangover was short lived with the EUR/USD rallying from the start of Europe till the close on Friday up nearly 200pips. Helping the rally on Friday was the tightening of Italian and Spanish Debt Yields with talk that Spain was getting closer to asking the ESM/ESFS officially for aid. New recovery highs were seen on Monday morning in Asia above 1.2400.
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