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15 May 2014
EUR/USD consolidates above 1.3700
FXStreet (Edinburgh) - The single currency is now trying to consolidate the bounce off intraday lows near 1.3650, with the EUR/USD meandering around 1.3715/20.
EUR/USD trimming losses
The pair managed quite well to leave behind poor GDP figures in the euro area for the first quarter and inflation figures in line with forecasts, not only recovering the 1.3700 handle but also printing fresh highs beyond 1.3730. Moving forward to Friday’s calendar in the 18-nation region, the only release of note will be EMU’s trade balance figures, while the Reuters/Michigan index will be in the spotlight across the pond. In light of the recent poor results from the GDP figures in the euro area, brian Martin, Senior European Strategist at ANZ, assessed, “The underperformance in growth is not the ECB's fault and we remain unconvinced about the merits of a negative deposit rate. On that basis, the market might be becoming overly optimistic about what the ECB can do and is thus subject to some disappointment”.
EUR/USD levels to watch
As of writing the pair is up 0.02% at 1.3719 and a break above 1.3731 (high May 15) would aim for 1.3741 (100-d MA) and finally 1.3771 (high May 13). On the downside, the initial support aligns at 1.3643 (low Feb.27) followed by 1.3625 (50% of 1.3477-1.3773) and then 1.3585 (low Feb.13).
EUR/USD trimming losses
The pair managed quite well to leave behind poor GDP figures in the euro area for the first quarter and inflation figures in line with forecasts, not only recovering the 1.3700 handle but also printing fresh highs beyond 1.3730. Moving forward to Friday’s calendar in the 18-nation region, the only release of note will be EMU’s trade balance figures, while the Reuters/Michigan index will be in the spotlight across the pond. In light of the recent poor results from the GDP figures in the euro area, brian Martin, Senior European Strategist at ANZ, assessed, “The underperformance in growth is not the ECB's fault and we remain unconvinced about the merits of a negative deposit rate. On that basis, the market might be becoming overly optimistic about what the ECB can do and is thus subject to some disappointment”.
EUR/USD levels to watch
As of writing the pair is up 0.02% at 1.3719 and a break above 1.3731 (high May 15) would aim for 1.3741 (100-d MA) and finally 1.3771 (high May 13). On the downside, the initial support aligns at 1.3643 (low Feb.27) followed by 1.3625 (50% of 1.3477-1.3773) and then 1.3585 (low Feb.13).