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23 Apr 2014
EUR to hold 1.38 handle? - Scotiabank
(Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that the EUR is back up above 1.38 as most of Europe returned from holidays.
Key Quotes:
"EUR is back up above 1.38 as most of Europe returned from holidays. Markets were still relatively quiet and prepared to ignore comments from ECB Coeure, suggesting that the strong EUR justifies accommodative policy with the ECB still having room to cut interest rates."
"Fundamental data was limited, with only the release of construction output, which was up 0.1%m/m and 6.7%y/y. April PMIs will be released Wednesday and are expected to remain relatively stable."
"EUR/USD short‐term technicals: mixed with EUR having traded in a relatively tight 80 point range (1.3785 to 1.3865) over the last seven sessions and lacking a catalyst for direction. Most studies that are providing a directional bias are also lacking conviction. Support lies at the recent low of 1.3785 and resistance lies at the recent high of 1.3865."
Key Quotes:
"EUR is back up above 1.38 as most of Europe returned from holidays. Markets were still relatively quiet and prepared to ignore comments from ECB Coeure, suggesting that the strong EUR justifies accommodative policy with the ECB still having room to cut interest rates."
"Fundamental data was limited, with only the release of construction output, which was up 0.1%m/m and 6.7%y/y. April PMIs will be released Wednesday and are expected to remain relatively stable."
"EUR/USD short‐term technicals: mixed with EUR having traded in a relatively tight 80 point range (1.3785 to 1.3865) over the last seven sessions and lacking a catalyst for direction. Most studies that are providing a directional bias are also lacking conviction. Support lies at the recent low of 1.3785 and resistance lies at the recent high of 1.3865."