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17 Mar 2014
EUR/USD consolidating above 1.3900
FXStreet (Edinburgh) - The EUR/USD is looking to stabilize in the area around 1.3920 as the US session is drawing to a close.
EUR/USD focus on ZEW
The pair managed to revert a negative start, shrugging-off EMU’s CPI data below expectations and making a convincing move beyond the 1.3900 handle. Moving to Tuesday’s docket in the euro bloc, the ZEW Survey in both Germany and EMU would grab all the attention ahead of US inflation figures and housing data. “Markets are pricing a 40% chance of an ECB interest rate cut over the next year but still EUR is holding onto recent gains. We hold a quarter-end EUR forecast of 1.40 reflecting ongoing capital flows and sentiment; but expect that later this year the weigh of ECB policy will soften EUR and accordingly hold a year-end EUR target of 1.30”, commented Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to consider
The pair is now up 0.07% at 1.3924 and a breakout of 1.3948 (high Mar.17) would target 1.3967 (2014 high Mar.13) en route to 1.4000 (psychological level). On the flip side, the initial support aligns at 1.3852 (10-d MA) followed by 1.3848 (low Mar.14) and then 1.3843 (low Mar.12).
EUR/USD focus on ZEW
The pair managed to revert a negative start, shrugging-off EMU’s CPI data below expectations and making a convincing move beyond the 1.3900 handle. Moving to Tuesday’s docket in the euro bloc, the ZEW Survey in both Germany and EMU would grab all the attention ahead of US inflation figures and housing data. “Markets are pricing a 40% chance of an ECB interest rate cut over the next year but still EUR is holding onto recent gains. We hold a quarter-end EUR forecast of 1.40 reflecting ongoing capital flows and sentiment; but expect that later this year the weigh of ECB policy will soften EUR and accordingly hold a year-end EUR target of 1.30”, commented Camilla Sutton, Chief FX Strategist at Scotiabank.
EUR/USD levels to consider
The pair is now up 0.07% at 1.3924 and a breakout of 1.3948 (high Mar.17) would target 1.3967 (2014 high Mar.13) en route to 1.4000 (psychological level). On the flip side, the initial support aligns at 1.3852 (10-d MA) followed by 1.3848 (low Mar.14) and then 1.3843 (low Mar.12).