FOLLOW MARKETMOVES

EUR/USD update (25th July 2012, 06:00)

Being short EUR/JPY seems to working quite nicely at present. We said yesterday that traders may be looking to go short EUR/JPY on a close below 95.60, and the momentum behind the pair is clear for all to see. 

EUR/USD also continues to head to our potential medium term target of 1.1877 (2010 low), although we realise just how one-sided traders have become. Once again it is hard to find anything remotely bullish to say about Europe, with a certain Spanish publication suggesting some officials haven’t ruled out leaving the euro or considering applying for a bailout, or even a restructure.

Spanish two-year yields pushed up eleven basis points to 6.64%, and it is becoming increasing likely that the bond market is pushing up yields in a bid to bring out ECB action. With Spanish borrowing costs too high, clearly something has to give, and what is more worrying is that Italy now seems to be the target as contagion spreads through the periphery. While funds from the ESM/EFSF may just about cover a Spanish bailout, it certainly won’t stretch to Italy as well. Greece also seems to missing its deficit targets, which shouldn’t surprise too many people, but more worrying is the level of officials (namely from Germany) who are calling for Greece to leave the EMU. German and French PMIs also went deeper into contractionary territory yesterday.

With EUR/JPY falling to a low of 94.12 and then subsequently 94.14 later in trade, for momentum to continue it would be nice to see a lower low in upcoming trade. We will keep an eye on the German IFO business climate, which is expected to decline to 104.5. It will once again be interesting to see how the bond market reacts to news that Moody’s has changed the outlook on the EFSF (who need to issue bonds to fund itself) to negative. There was also a limited reaction to an article written by Jon Hilsenrath in the Wall Street Journal in which he said that the Fed may buy more assets (i.e. QE3) if growth doesn’t pick up, highlighting the September meeting as the likely point where it will be largely discussed. This may get more focus in US trade and could affect EUR/JPY. 
comments powered by Disqus

All Forex News

Tags

, EFSF, ESM

Trusted Firms

All Reviews
EUR/USD update (16th April 2014, 14:00) 16 Apr 2014

The euro is higher versus the US dollar, after the level of inflation in the eurozone remained unchanged in March.

GBP/USD update (16th April 2014, 13:00) 16 Apr 2014

UK unemployment has now dipped below 7%, the initial threshold level the Bank of England introduced in August but reneged upon last month, which has s...

EUR/USD update (15th April 2014, 15:00) 15 Apr 2014

Having popped its head above the $1.39 level at the tail end of last week, EUR/USD has found itself pulled back.

Market Comment 15th April 2014 15 Apr 2014

European equities are set to open flat as they’re caught between two competing poles of sentiment. 

AUD/USD update (14th April 2014, 18:00) 14 Apr 2014

The Australian dollar is gaining ground against the US dollar, as traders prepare for the latest minutes release from the Reserve Bank of Australia.

EUR/USD update (14th April 2014, 16:00) 14 Apr 2014

The euro is under pressure against the US dollar as tensions in eastern Ukraine weigh on the currency.

Market Comment 14th April 2014 14 Apr 2014

European equities are set to start on the back foot as last week’s negative sentiment remains firmly intact. 

GBP/USD update (11th April 2014, 16:00) 11 Apr 2014

After touching $1.68 yesterday, sterling has dropped back, hit by weaker UK construction output figures.

EUR/USD update (11th April 2014, 16:00) 11 Apr 2014

If we see the euro close above $1.39 today, then it will be the icing on the cake for the currency, which has enjoyed a remarkable week.

Market Comment 11th April 2014 11 Apr 2014

European equities are set to open lower tracking overnight declines in the US. 

EUR/USD update (10th April 2014, 12:00) 10 Apr 2014

Momentum has taken EUR/USD higher as a steady flow of economic data has been released over the week.

Market Comment 10th April 2014 10 Apr 2014

European equities are set to show modest gains on the open due to a dovish FOMC Meeting minutes overnight. 

AUD/USD update (9th April 2014, 19:00) 9 Apr 2014

The Australian dollar has reached a new high for 2014 prior to tonight's Federal Reserve minutes release.

EUR/USD update (9th April 2014, 18:00) 9 Apr 2014

The EUR/USD has pulled back from the $1.38 mark as traders have taken their profits from two days of gains.

Market Comment 9th April 2014 9 Apr 2014

European equities are set to open mixed as traders continue to tread cautiously. 

GBP/USD update (8th April 2014, 14:00) 8 Apr 2014

Today’s strong UK manufacturing and industrial production data has helped sterling gain ground against the US dollar.



Share this with your friends

To:
From:
Your comments:

EUR/USD update (25th July 2012, 06:00)

Being short EUR/JPY seems to working quite nicely at present. We said yesterday that traders may be looking to go short EUR/JPY on a close below 95.60, and the momentum behind the pair is clear for all to see. 

Read more »

Connect to successful traders – join Marketmoves.com free now

Log In or Sign up

Facebook User?

You can use your facebook account to sign up with Live streaming sport.

Connect with facebook
Remember me.
Did you forget your password?