FXstreet.com (Barcelona) - The EUR/USD was envolved in a new rally by the end of the European morning as a news report said Spain will be requesting an emergency credit line soon, with the particularity of being accepted by German lawmakers. These reports come ahead of the Euro summit next Thursday and Friday.
The EUR/USD rallied to 1.3060 on the report, coupled with expectations ahead of the US CPI and industrial production data. Profit taking led the pair down to 1.3040 briefly as it is trading back to its highs. The US CPI inflation report came in higher than expected, at 2.0% in September, and US industrial production grew more than consensus forecast, at 0.4% in September.
The US markets, in earnings season, are edging higher on Tuesday. So are doing the European bourses as they prepare to close for the day. “We continue to suspect that the market will struggle to regain 1.3072. However while under pinned by the 1.2801 3 month uptrend further upside probes remain plausible”, wrote Commerzbank analyst Karen Jones.
The EUR/USD rallied to 1.3060 on the report, coupled with expectations ahead of the US CPI and industrial production data. Profit taking led the pair down to 1.3040 briefly as it is trading back to its highs. The US CPI inflation report came in higher than expected, at 2.0% in September, and US industrial production grew more than consensus forecast, at 0.4% in September.
The US markets, in earnings season, are edging higher on Tuesday. So are doing the European bourses as they prepare to close for the day. “We continue to suspect that the market will struggle to regain 1.3072. However while under pinned by the 1.2801 3 month uptrend further upside probes remain plausible”, wrote Commerzbank analyst Karen Jones.
