Forex: EUR/USD hits 1.3000 (Barcelona) - The risk rally on the BoJ easing was capped at 1.3085 high (at 06:00 GMT) and the EUR/USD came down all the way across the board to 1.3000 mark as the single currency weakens on headlines coming from Germany and doubts about the ECB. The German ruling coalition lawmakers will propose to the parliament that the ECB should only supervise systemically relevant or cross-border banks. The Finish PM Kataien doubts the ECB bond buying program will be successful in the long term, lowering the Spanish yield. Market participants are also concerned about the imposed conditions to a country that wants to access the OMT, and how much time will it take to see the program get started.

The EUR/USD is now trading around 1.3010 (-0.27% on the day) ahead of the New York opening, with housing data on the way. Having jumped by +11% in the previous week, US mortgage applications by MBA have dropped -0.2% in the week ending at September 14.

Commerzbank analysts are “cautious given the extent of the recent run up, and note that the slow stochastics indicator has started to roll over”, wrote analyst Karen Jones, suggesting a pullback near term to 1.2932/1.2829 (200 day ma), before a probable renewed upside attempt.