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27 Feb 2014
EUR/USD rebounds to 1.3660
FXStreet (Edinburgh) - The shared currency is now attempting to leave the lower band of the intraday range, pushing the EUR/USD to levels beyond 1.3660.
EUR/USD focus on German CPI
The dominating risk-off trade continues to weigh on the pair today, although the EUR found some respite after EMU’s Economic Sentiment exceeded expectations in February (up to 101.2 vs. 100.9 exp.). In the opinion of Martin van Vliet, Analyst at ING Bank NV, “Overall Eurozone sentiment is now consistent with underlying GDP growth of about 0.3% QoQ – similar to the pace seen in Q4. While the weak money and credit growth figures released earlier today argue in favour of further monetary easing, the sentiment improvement in February give the hawks on the ECB’s governing council some ammunition to make the case for a continued wait-and-see stance”. Next on tap in the euro docket will be the release of the advanced German inflation figures for February, with consensus expecting consumer prices to advance 1.3% on a yearly basis.
EUR/USD levels to watch
As of writing the pair is losing 0.20% at 1.3657 and a breakdown of 1.3642 (daily cloud top) would open the door to 1.3625 (50% of 1.3477-1.3773) and then 1.3585 (low Feb.13). On the flip side, the initial hurdle aligns at 1.3719 (10-d MA) followed by 1.3757 (high Feb.26) and finally 1.3768 (high Feb.25).
EUR/USD focus on German CPI
The dominating risk-off trade continues to weigh on the pair today, although the EUR found some respite after EMU’s Economic Sentiment exceeded expectations in February (up to 101.2 vs. 100.9 exp.). In the opinion of Martin van Vliet, Analyst at ING Bank NV, “Overall Eurozone sentiment is now consistent with underlying GDP growth of about 0.3% QoQ – similar to the pace seen in Q4. While the weak money and credit growth figures released earlier today argue in favour of further monetary easing, the sentiment improvement in February give the hawks on the ECB’s governing council some ammunition to make the case for a continued wait-and-see stance”. Next on tap in the euro docket will be the release of the advanced German inflation figures for February, with consensus expecting consumer prices to advance 1.3% on a yearly basis.
EUR/USD levels to watch
As of writing the pair is losing 0.20% at 1.3657 and a breakdown of 1.3642 (daily cloud top) would open the door to 1.3625 (50% of 1.3477-1.3773) and then 1.3585 (low Feb.13). On the flip side, the initial hurdle aligns at 1.3719 (10-d MA) followed by 1.3757 (high Feb.26) and finally 1.3768 (high Feb.25).