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17 Apr 2015
EUR/USD… resilience… or innocence?
FXStreet (Edinburgh) - The single currency staged a nice comeback from Monday’s troughs in the area of 1.0500 the figure to today’s tops in the mid-1.0800s, managing to close the week on a positive note and somehow recovering part of the previous week’s sharp sell off.
It’s all about the dollar… and Greece
The weekly correction higher in spot relies almost exclusively in the softness seen in the US docket, with the vast majority of results disappointing investors. The exception was today’s releases of March CPI and Reuters/Michigan index, giving a dose of much needed oxygen to the greenback.
Adding to a gloomy calendar, speeches by Fed members did little-to-nothing to ignite some reaction in the USD, pushing expectations for a Fed’s rate hike further back in the year.
It is surprising, however, the resilience of the single currency regarding the developments from Greece. Markets already know that there will be no deal at the Eurogroup meeting on April 24th, and the rumours that the country could run out of money in the next weeks keep growing bigger. In addition, uncertainty keeps building up in light of the slew of repayments – mainly to the IMF – due in May, with the spectre of a default and ‘Grexit’ already hovering over the markets.
Against this backdrop, the pair managed to close the week in levels close to the 1.0800 handle, more than 3 big-figures up from Monday’s open. Next week promises to be very interesting, with the door open to a continuation of the EUR-rally or a (more logical, more expected) return to the 1.05/1.06 area.
It’s all about the dollar… and Greece
The weekly correction higher in spot relies almost exclusively in the softness seen in the US docket, with the vast majority of results disappointing investors. The exception was today’s releases of March CPI and Reuters/Michigan index, giving a dose of much needed oxygen to the greenback.
Adding to a gloomy calendar, speeches by Fed members did little-to-nothing to ignite some reaction in the USD, pushing expectations for a Fed’s rate hike further back in the year.
It is surprising, however, the resilience of the single currency regarding the developments from Greece. Markets already know that there will be no deal at the Eurogroup meeting on April 24th, and the rumours that the country could run out of money in the next weeks keep growing bigger. In addition, uncertainty keeps building up in light of the slew of repayments – mainly to the IMF – due in May, with the spectre of a default and ‘Grexit’ already hovering over the markets.
Against this backdrop, the pair managed to close the week in levels close to the 1.0800 handle, more than 3 big-figures up from Monday’s open. Next week promises to be very interesting, with the door open to a continuation of the EUR-rally or a (more logical, more expected) return to the 1.05/1.06 area.