EUR Trading Outlook
The Euro (EUR) The EUR/USD broke above the 1.3150 and then onto 1.3200 in the US session as the positive stock market and sentiment supported. The reversal from the China data in Asia so far has only brought the major back to 1.3160 and we are watching carefully the European and US reaction tonight.
The Euro (EUR) the EUR/USD tested 1.3150 as Yields in the Eurozone fell in a rare reprieve. ECB members were talking up the ECB support for the Spanish bond market and pleading for more time for the reforms to flow through to the economy. Time will tell how much patience the bond vigilantes will have going forward.
The Euro (EUR) although it was in the center of the storm the downside was limited as solid support was found above 1.3000. More selling was seen on the EUR/JPY which hit fresh month lows under Y106. The outlook is for more selling why the Spanish and Italian bonds continue to fall sharply.
The Euro (EUR) the EUR/USD moved back above 1.3100 as light markets kept the 1.3000 level safe for now. A break of the key level could see a move lower to 1.2850 and more pressure on the crosses. Yields on Spanish and Italian bonds increased again and is a worrying sign the debt crisis may come back.
The Euro (EUR) very quiet markets on Friday with most European traders away and US only in for a half day on Easter celebrations. The EUR/USD popped higher immediately after the jobs data but EUR/JPY dragged it lower again.
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