29 Apr 2014
EUR/USD treading water around 1.3800
FXStreet (Edinburgh) - The shared currency is looking to stabilize around the 1.3800 handle, with the EUR/USD clinging to the lower band of the intraday range.
EUR/USD attention to EMU’s CPI
The most relevant risk event tomorrow will be the release of April’s advance figures of the CPI in the euro area. Market consensus points to an annual rise of 0.8%, although traders remain cautious in light of the recent softer than expected prices in Germany. According to Camilla Sutton, Chief FX Strategist at Scotiabank, “With inflation apperaring to have bottomed in March, expectations firmly anchored (from the ECB’s perspective) and PMIs suggesting a firming economic backdrop, the bar for the announcement of QE is relatively high. However, should EUR break above the ytd high of 1.3967, towards 1.40, we expect the ECB to sound increasingly concerned with how this filters into its price stability mandate”.
EUR/USD relevant levels
The pair is now losing 0.30% at 1.3808 with the immediate support at 1.3792 (55-d MA) ahead of 1.3791 (low Apr.24) and then 1.3785 (low Apr.22). On the upside, a breakout of 1.3880 (high Apr.28) would open the door to 1.3906 (high Apr.11) and finally 1.3925 (high Mar.19).
EUR/USD attention to EMU’s CPI
The most relevant risk event tomorrow will be the release of April’s advance figures of the CPI in the euro area. Market consensus points to an annual rise of 0.8%, although traders remain cautious in light of the recent softer than expected prices in Germany. According to Camilla Sutton, Chief FX Strategist at Scotiabank, “With inflation apperaring to have bottomed in March, expectations firmly anchored (from the ECB’s perspective) and PMIs suggesting a firming economic backdrop, the bar for the announcement of QE is relatively high. However, should EUR break above the ytd high of 1.3967, towards 1.40, we expect the ECB to sound increasingly concerned with how this filters into its price stability mandate”.
EUR/USD relevant levels
The pair is now losing 0.30% at 1.3808 with the immediate support at 1.3792 (55-d MA) ahead of 1.3791 (low Apr.24) and then 1.3785 (low Apr.22). On the upside, a breakout of 1.3880 (high Apr.28) would open the door to 1.3906 (high Apr.11) and finally 1.3925 (high Mar.19).