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27 Aug 2015
EUR/USD drops for the third day in a row
FXStreet (Córdoba) - EUR/USD has been hovering around 1.1250 during the last hours consolidating daily losses. The pair is about to end the day 0.50% lower, posting the third decline in a row.
Greenback also rose today versus the pound, the Swiss franc and the yen boosted by growth data of the second quarter in the US that was revised to the upside, from 2.3% to 3.7%.
Has the outlook change?
After surging on Monday, EUR/USD turned to the downside and since Tuesday’s American session it has been moving with a bearish bias. Today bottomed at 1.1201 and then rebounded, finding resistance at 1.1260.
From Monday highs it has fallen 465 pips and is now headed toward a weekly decline after rising in four out of the previous five weeks. The move has been considerably and it could signal stronger times ahead of the US dollar or just an important correction from where the euro could resume the upside.
“There remains grounds for being bearish EUR/USD but that a more cautious Federal Reserve due to the financial market turmoil will make parity by year-end a tough ask”, said Derek Halpenny, European Head of Global Markets Research at The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Halpenny noted that the positioning in EUR/USD has now become a lot more neutral, “reducing the risk of extreme moves based on further forced euro selling.”
Greenback also rose today versus the pound, the Swiss franc and the yen boosted by growth data of the second quarter in the US that was revised to the upside, from 2.3% to 3.7%.
Has the outlook change?
After surging on Monday, EUR/USD turned to the downside and since Tuesday’s American session it has been moving with a bearish bias. Today bottomed at 1.1201 and then rebounded, finding resistance at 1.1260.
From Monday highs it has fallen 465 pips and is now headed toward a weekly decline after rising in four out of the previous five weeks. The move has been considerably and it could signal stronger times ahead of the US dollar or just an important correction from where the euro could resume the upside.
“There remains grounds for being bearish EUR/USD but that a more cautious Federal Reserve due to the financial market turmoil will make parity by year-end a tough ask”, said Derek Halpenny, European Head of Global Markets Research at The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Halpenny noted that the positioning in EUR/USD has now become a lot more neutral, “reducing the risk of extreme moves based on further forced euro selling.”