11 Nov 2013
EUR/USD parked around 1.3400
FXstreet.com (Edinburgh) -Thin trade and lack of catalysts are plotting against any attempt of the EUR/USD to break the dullness surrounding the 1.3400 figure so far.
EUR/USD focus on CPI
The importance around consumer prices in the euro area has grown bigger since the release of preliminary EMU inflation figures. The advanced data showed a continuation of the disinflation trend, with headline CPI advancing a meagre 0.7% on a yearly basis - well below the ECB’s target – and ultimately being the main factor behind last week’s rate cut. Against this backdrop, market participants would put under the microscope this week’s German, Italian and Spanish CPI results, ahead of Friday’s final EMU releases. Analysts at TD Securities commented, “the problem is that this cut to the refi rate will have little influence to growth or inflation. It has helped pull EUR/USD lower but if weak US data drives any further weakness in the USD, the ECB will have limited agility to counteract”.
EUR/USD key levels
As of writing the pair is now advancing 0.35% at 1.3407 with the next resistance at 1.3438 (high Nov.8) followed by 1.3523 (MA10d) and finally 1.3529 (high Nov.7). On the flip side, a break below 1.3345 (low Nov.11) would open the door to 1.3318 (low Nov.8) and then 1.3295 (low 7 Nov.).
EUR/USD focus on CPI
The importance around consumer prices in the euro area has grown bigger since the release of preliminary EMU inflation figures. The advanced data showed a continuation of the disinflation trend, with headline CPI advancing a meagre 0.7% on a yearly basis - well below the ECB’s target – and ultimately being the main factor behind last week’s rate cut. Against this backdrop, market participants would put under the microscope this week’s German, Italian and Spanish CPI results, ahead of Friday’s final EMU releases. Analysts at TD Securities commented, “the problem is that this cut to the refi rate will have little influence to growth or inflation. It has helped pull EUR/USD lower but if weak US data drives any further weakness in the USD, the ECB will have limited agility to counteract”.
EUR/USD key levels
As of writing the pair is now advancing 0.35% at 1.3407 with the next resistance at 1.3438 (high Nov.8) followed by 1.3523 (MA10d) and finally 1.3529 (high Nov.7). On the flip side, a break below 1.3345 (low Nov.11) would open the door to 1.3318 (low Nov.8) and then 1.3295 (low 7 Nov.).