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13 Sep 2013
EUR/USD downwards amidst Taper tantrum
FXstreet.com (Athens)- The EUR/USD has been under pressure since the opening of the Asian bourses, mainly due to a Nikkei report suggesting “ that Obama will name Summers as new Fed chair, which would be dollar positive as he’s seen as less of a fan of quantitative easing.”
The EUR/USD under pressure on “Summers” but the greenback may fizzle ahead of data
The greenback has been strengthening across the board since the very start of the opening of the Asian bourses, as the markets’ attention turned to next week’s FOMC policy announcement. What’s more, the Nikkei report suggesting that “Obama to name Summers as next Fed boss.” While Summers is not considered to be the most avid supporter of quantitative easing, the “greenback” gained solid ground against its major counter parts. The initial reaction to Summers “story” led to the USD becoming bid but since the past couple of hours the American dollar becomes firmer ahead of the crucial retail sales data. On the other side of the Atlantic ocean, it seems like that when Fed sneezes, Euro zone catches a cold. At the moment, news wires across the globe underscore the challenge for ECB to boost economy, suggesting “ECB's Asmussen says Euro-zone Q2 GDP growth is partially temporary” and that “EU says employment data is no grounds to celebrate and the recovery is fragile.”
Strategic Bias and Technical Perspective on EUR/USD
Calendar is hotting up with PPI , retail sales and Michigan confidence data released, with the retail sales data drawing the attention all over the globe. While, the current expectation is that we’ll see a small notional tapering, a strong retail sales report, and a positive print may spark a near-term rally in the USD as the world’s largest economy gets on a more sustainable path. Emmanuel Ng of OCBC Bank is neutral on EUR/USD in the near term. What’s more he suggests that “We stay neutral on the EUR-USD in the interim with 1.3350 likely to cap on the back of Draghi’s latest remarks while the 55-day MA (1.3209) may continue to provide a useful downside reference point.”
The EUR/USD under pressure on “Summers” but the greenback may fizzle ahead of data
The greenback has been strengthening across the board since the very start of the opening of the Asian bourses, as the markets’ attention turned to next week’s FOMC policy announcement. What’s more, the Nikkei report suggesting that “Obama to name Summers as next Fed boss.” While Summers is not considered to be the most avid supporter of quantitative easing, the “greenback” gained solid ground against its major counter parts. The initial reaction to Summers “story” led to the USD becoming bid but since the past couple of hours the American dollar becomes firmer ahead of the crucial retail sales data. On the other side of the Atlantic ocean, it seems like that when Fed sneezes, Euro zone catches a cold. At the moment, news wires across the globe underscore the challenge for ECB to boost economy, suggesting “ECB's Asmussen says Euro-zone Q2 GDP growth is partially temporary” and that “EU says employment data is no grounds to celebrate and the recovery is fragile.”
Strategic Bias and Technical Perspective on EUR/USD
Calendar is hotting up with PPI , retail sales and Michigan confidence data released, with the retail sales data drawing the attention all over the globe. While, the current expectation is that we’ll see a small notional tapering, a strong retail sales report, and a positive print may spark a near-term rally in the USD as the world’s largest economy gets on a more sustainable path. Emmanuel Ng of OCBC Bank is neutral on EUR/USD in the near term. What’s more he suggests that “We stay neutral on the EUR-USD in the interim with 1.3350 likely to cap on the back of Draghi’s latest remarks while the 55-day MA (1.3209) may continue to provide a useful downside reference point.”