With the euro zone calendar behind and nothing really interesting in the US docket, market participants will now shift their focus to the meeting between A.Merkel and A.Samaras in Athens, searching for any catalyst to give the single currency a more definite bias.
Karen Jones, FICC Head Technical Analysis at Commerzbank, argues “we remain unable to rule out a re-challenge of the 1.3173/77 band… however we continue to favour failure there”. The expert suggests that immediate support levels lie at 1.2905 ahead of 1.2824/1.2738
In the view of Beat Siegenthaler, analyst at the Swiss bank UBS, “We still believe that ultimately aggressive ECB intervention could push the euro substantially above 1.30, but this would require action soon. And even if the OMT does get activated, it now looks like on the way there we will have to see lower levels first”.