fxpulsation
Posts : 8759 Join date : 2012-01-25
| Subject: Morning Forex Fundamental: EUR Wed Sep 25, 2013 8:34 am | |
| Morning Forex Fundamental: EUR On Tuesday, EUR/USD continued its gradual downtrend from Monday. Trading was mostly technical in nature. The data were also unable to give a clear guidance. USD/JPY shows no clear trend either, but the topside is blocked as core bond yields are declining Intra-day, EUR/USD was rather well bid early in the session but the upside momentum was aborted as the German IFO report (slightly) missed consensus expectations. EUR/USD reversed the earlier gains and dropped back below the 1.35 barrier. At the onset of the US trading session, there were headlines on the screens from ECB's Constancio and ECB's Coeure. The latter repeated that the ECB looks at exchange rates as one element in assessing the economic situation, but that it has no target. This is a well-known point of view from the ECB, but the focus on the currency was apparently enough for markets to turn a bit more cautious on the single currency. EUR/USD touched an intraday low at 1.3465 early in US dealings. The US data were in line to slightly below consensus, but the impact on EUR/USD trading was very limited. During the session, US bonds underperformed their German counterparts. So, bond yields moved in favour of the dollar. However, we wouldn't give too much weighed to this factor for EUR/USD trading. USD/JPY was also under pressure early in the session as the pair lost ground on declining core bond yields. However, a decent performance of the equity markets (supported by easing geopolitical tensions) prevented further losses. EUR/USD closed a rather uneventful trading session at 1.3474, down from 1.3493 on Monday evening. | |
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