EUR Trading Outlook
The Euro (EUR) traded above 1.4200 on continued strength with sentiment towards the single currency still very strong. EUR/GBP hit multi-month highs above 0.8850 before settling slightly lower. Weak February Retail Sales at -0.3% vs. 0.4% previously. Overall the EUR/USD traded with a low of 1.4115 and a high of 1.4234 before closing the day around 1.4160 in the New York session. Looking ahead, March Unemployment Rate forecast at 8.9%.
The Euro (EUR) dipped in Europe but reversed once again on strong EUR/JPY buying which tracked stock markets higher in the US Session. Resistance was found at 1.4150 for the second day and the market may wait until Friday US jobs reports for fresh direction. Overall the EUR/USD traded with a low of 1.4051 and a high of 1.4149 before closing the day around 1.4135 in the New York session. Looking ahead, February German Retail Sales are forecast at 0.4% vs. 1.4% previously.
The Euro (EUR) Was able to extend Tuesday&rsquo s rally above 1.4100 before reversing on FED speaker Bullard hawkish comments the QE2 program maybe be cut short by 100bln. Overall the EUR/USD traded with a low of 1.4047 and a high of 1.4150 before closing the day around 1.4110 in the New York session. Looking ahead, March Economic Sentiment is forecast at 107.8 vs. 107.5.
The Euro (EUR) ECB President Trichet inspired a fresh rally in the Euro across the board stating that inflation was beginning to show signs of being persistent. EUR/GBP hit multimonth highs above 0.8820. German political concerns and Portugal bailout suggestions are being overlooked for now. Overall the EUR/USD traded with a low of 1.4025 and a high of 1.4117 before closing the day around 1.4075 in the New York session.
The Euro (EUR) ended the week on the back foot as the Portugal issue festered and refused to go away with many pricing in a bailout over the next couple of weeks. March German IFO fell slightly to 111.1 vs. 111.3 previously. Overall the EUR/USD traded with a low of 1.4052 and a high of 1.4193 before closing the day around 1.4063 in the New York session. Looking ahead, ECB President Trichet speaks.
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