Intra-Day Market Moving News and Views EUR/USD
17 Apr 2014 03:19GMT
EUR/USD - 1.3840.. Today's rebound due to intra-day rally in cable is frustrating euro bears as despite hitting session high of 1.3851 in Europe on Wed, the release of the eurozone annual inflation data for Mar at 0.5%, the lowest since Nov 2009, knocked euro lower, price later fell to 1.3804 in NY.
Many economists believe eurozone inflation is what ECB President Mario Draghi called a danger zone when CPI is below 1%. Therefore, the ECB may be pressured to take some kind of monetary easing in its next policy meeting. In addition, recent euro strength has made many ECB policymakers uncomfortable as the strg euro makes imports cheaper n prices for imported goods n services lower, thus lowering inflation expectation.
Traders bot eur/usd at Asian open when cable shot abv Feb's 4-year high at 1.6823 on stop buying, euro quickly followed suit n rose to 1.3841/42 after tripping stops abv 1.3833 n more stops abv Wed's high of 1.3851 are now in focus. Buying the single currency on dips for gain twd 1.3660-70 area in Asia is therefore the favoured strategy due to dlr's intra-day broad-based weakness but traders shud not be too optimistic as sharp gain beyond there is unlikely to be seen ahead of the long Easter holiday n last Fri's 3-week peak at 1.3906 is expected hold today.
For now, bids are placed at 1.3820-10 n around 1.3800 with stops emerging below 1.3790, whilst offers are noted at 1.3860-70 n 1.3890-00.
Today, Germany will release its latest PPI at 06:00GMT n market is forecasting the data to come in at 0.0% m/m n -0.7% y/y vs prev. readings at 0.0% n -0.9% respectively. With the potential for eurozone QE looming, traders will be watching the release closely to gain insight into the possible future of ECB monetary policy.
17 Apr 2014 03:19GMT
EUR/USD - 1.3840.. Today's rebound due to intra-day rally in cable is frustrating euro bears as despite hitting session high of 1.3851 in Europe on Wed, the release of the eurozone annual inflation data for Mar at 0.5%, the lowest since Nov 2009, knocked euro lower, price later fell to 1.3804 in NY.
Many economists believe eurozone inflation is what ECB President Mario Draghi called a danger zone when CPI is below 1%. Therefore, the ECB may be pressured to take some kind of monetary easing in its next policy meeting. In addition, recent euro strength has made many ECB policymakers uncomfortable as the strg euro makes imports cheaper n prices for imported goods n services lower, thus lowering inflation expectation.
Traders bot eur/usd at Asian open when cable shot abv Feb's 4-year high at 1.6823 on stop buying, euro quickly followed suit n rose to 1.3841/42 after tripping stops abv 1.3833 n more stops abv Wed's high of 1.3851 are now in focus. Buying the single currency on dips for gain twd 1.3660-70 area in Asia is therefore the favoured strategy due to dlr's intra-day broad-based weakness but traders shud not be too optimistic as sharp gain beyond there is unlikely to be seen ahead of the long Easter holiday n last Fri's 3-week peak at 1.3906 is expected hold today.
For now, bids are placed at 1.3820-10 n around 1.3800 with stops emerging below 1.3790, whilst offers are noted at 1.3860-70 n 1.3890-00.
Today, Germany will release its latest PPI at 06:00GMT n market is forecasting the data to come in at 0.0% m/m n -0.7% y/y vs prev. readings at 0.0% n -0.9% respectively. With the potential for eurozone QE looming, traders will be watching the release closely to gain insight into the possible future of ECB monetary policy.
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