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9 Sep 2013
EUR/USD strikes back above 1.3200
FXstreet.com (Athens)- The EUR/USD strikes back above 1.3200 gaining around 10 pips, as Syria’s tensions fade way, European yields calming down and…Sentix boosts confidence in Euro land.
The EUR/USD spikes above 1.3200; it might be a squeezing of positions taken from Friday’s NFP?
Earlier, at 8.30 GMT hours, the Sentix confidence data released at +6.5 versus -3.5 expected, a clear sign that sentiment is indeed turning in the Euro-Zone. Moreover, spreads in Euro land tend to calm down; elaborating on, German 10-year bond yield is trading 0.1 bps lower to 1.95%, while Spain benchmark yield is trading 0.9 bps lower to 4.51%. As it is taken for granted that the Fed will proceed in September with a gradual cutback of asset purchases (as otherwise might be problematic from a credibility perspective given Fed officials’ considerable efforts “communicate” tapering the recent months), investors should try to figure out news-flow arguing against a sustained stimulus reduction cycle through the year-end. What’s more, as long as news wires suggest that “UK and US share revulsion over the Syria attack, during joint press conference with US's Kerry,” it is well anticipated that the single currency might be find additional support. Needless to say, traders over the glove should take upon consideration the fact, that the pair might be still in an upwards trend, due on position "squeezing" since Friday's NFP's.
Technical Outlook and Strategic Bias on EUR/USD
Greg Moore on behalf of TD securities suggest that “EUR/USD has bounced a little further from the lows reached late last week, continuing with tone in the wake of Friday’s softer US jobs report. For the week ahead, Eurozone industrial production and CPI on Wednesday are the data highlights of the week, but the market will likely be more concerned with the Italian Senate talks on whether to expel Berlusconi (starting today at 9:00AM ET), the ECB’s Asmussen’s comments on Tuesday and Wednesday, and Eurogroup and Ecofin meetings at the end of the week. Overall, without too much significant on the calendar, consolidation could be the order of the week and that could see EUR/USD retrace a bit more recent slide. We continue to be bearish longer term however, and look to sell rallies to the mid-upper 1.32 area.” At the time of writing the pair is trading nearly 1.3216, up 0.12%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at S3:1.3182 S2: 1.3142 S3: 1.3116 and resistance at R1: 1.3245 R2:1.3277 R3: 1.3310, respectively.
The EUR/USD spikes above 1.3200; it might be a squeezing of positions taken from Friday’s NFP?
Earlier, at 8.30 GMT hours, the Sentix confidence data released at +6.5 versus -3.5 expected, a clear sign that sentiment is indeed turning in the Euro-Zone. Moreover, spreads in Euro land tend to calm down; elaborating on, German 10-year bond yield is trading 0.1 bps lower to 1.95%, while Spain benchmark yield is trading 0.9 bps lower to 4.51%. As it is taken for granted that the Fed will proceed in September with a gradual cutback of asset purchases (as otherwise might be problematic from a credibility perspective given Fed officials’ considerable efforts “communicate” tapering the recent months), investors should try to figure out news-flow arguing against a sustained stimulus reduction cycle through the year-end. What’s more, as long as news wires suggest that “UK and US share revulsion over the Syria attack, during joint press conference with US's Kerry,” it is well anticipated that the single currency might be find additional support. Needless to say, traders over the glove should take upon consideration the fact, that the pair might be still in an upwards trend, due on position "squeezing" since Friday's NFP's.
Technical Outlook and Strategic Bias on EUR/USD
Greg Moore on behalf of TD securities suggest that “EUR/USD has bounced a little further from the lows reached late last week, continuing with tone in the wake of Friday’s softer US jobs report. For the week ahead, Eurozone industrial production and CPI on Wednesday are the data highlights of the week, but the market will likely be more concerned with the Italian Senate talks on whether to expel Berlusconi (starting today at 9:00AM ET), the ECB’s Asmussen’s comments on Tuesday and Wednesday, and Eurogroup and Ecofin meetings at the end of the week. Overall, without too much significant on the calendar, consolidation could be the order of the week and that could see EUR/USD retrace a bit more recent slide. We continue to be bearish longer term however, and look to sell rallies to the mid-upper 1.32 area.” At the time of writing the pair is trading nearly 1.3216, up 0.12%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at S3:1.3182 S2: 1.3142 S3: 1.3116 and resistance at R1: 1.3245 R2:1.3277 R3: 1.3310, respectively.