24 Jul 2014
EUR enjoys a brief respite - ING
FXStreet (Łódź) - ING FX Strategists Shaun Osborne and Martin Schwerdtfeger note that following the positive China and Eurozone PMI releases in the European morning the EUR regained ground
Key quotes
“After breaking key support at 1.3479 two days ago, EUR/USD marked a fresh YTD low overnight at 1.3438.”
“However, the PMI data saw the cross rally more than 40 points and it is now back again in the 1.3470 area.”
“This respite may extend during the day if US data disappoint (we see June New Home Sales below the market at -6.8% m/m following the previous month’s enormous 18.6% jump and Weekly Jobless Claims up to 315K from last week’s unexpected decline to 302K) and perhaps tomorrow on what we are expecting it's going to be a soft UK Q2 GDP release.”
“But beyond the next few days, we believe EUR remains vulnerable to an extension of the downward trend it has been showing since ECB President Draghi capped it around 1.3950 with his ‘increasingly important’ remarks.”
“A week close below 1.35 would leave the cross liable to a run lower testing the high 1.33s. Only a string of positive data surprises could halt this trend.”
Key quotes
“After breaking key support at 1.3479 two days ago, EUR/USD marked a fresh YTD low overnight at 1.3438.”
“However, the PMI data saw the cross rally more than 40 points and it is now back again in the 1.3470 area.”
“This respite may extend during the day if US data disappoint (we see June New Home Sales below the market at -6.8% m/m following the previous month’s enormous 18.6% jump and Weekly Jobless Claims up to 315K from last week’s unexpected decline to 302K) and perhaps tomorrow on what we are expecting it's going to be a soft UK Q2 GDP release.”
“But beyond the next few days, we believe EUR remains vulnerable to an extension of the downward trend it has been showing since ECB President Draghi capped it around 1.3950 with his ‘increasingly important’ remarks.”
“A week close below 1.35 would leave the cross liable to a run lower testing the high 1.33s. Only a string of positive data surprises could halt this trend.”