EUR Trading Outlook
The Euro (EUR) the move up to 1.3000 was fueled by stops being hit above 1.2970 and everyone hopping on to the long bandwagon after the ECB president reiterated he was ready to implement the OMT bond buying program if needed. The big move of late has been the EUR/JPY which has enjoyed heavy gains this week but the true test of strength will be the NFP tonight.
The Euro (EUR) an extremely contained day of trading for the usually very volatile EUR/USD pair. The major stayed in a 60 pip range and closed at 1.2910 5 pips from where it opened. Traders have been sidelined waiting for ECB today where they are expected to hold but traders are interested in the press conference afterwards with ECB President Draghi.
The Euro (EUR) the EUR/USD popped Monday’s high and rallied to 1.2950. The outlook is for more gains but we are holding at current levels waiting for further clarification on the bailout timeline. The initial reaction to Spanish PM Rajoy was positive as he said his local governments had come together in a fiscal consolidation path. The market sold off on the ‘EU Aid not imminent’ comments and no doubt we will have further clarification of what this means shortly.
The Euro (EUR) with little headline news from the weekend the market took its cues from Technicals and from improving risk appetite. The EUR/USD moved above 1.2900 but then reversed back under the figure the dollar resurgence began. There are major risk events for the Euro ahead that will start to dominate the headlines with the ECB meeting critical on Thursday.
The Euro (EUR) the results of the Spanish Bank audit were roughly as forecast and was a non event for the market. The Downgrade rumors got the market selling for most of the US session and we closed at lows of the day. The outlook is mixed with more downside possible as Spain deliberates asking for a bailout and Greece remains ongoing issue.
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