Euro dollar continues to trade at high ground despite new bad figures and worries about Greece. The complications concerning the Finnish demand for collateral aren’t taking their toll at the moment. Will it fall later on?
Here’s a quick update on technicals, fundamentals and what’s going on in the markets.
EUR/USD Technicals
- Asian session: Another relaxed session saw more trading in range.
- Current range 1.4350 to 1.4450.
- Further levels in both directions: Below 1.4350, 1.4282, 1.4220, 1.4160, 1.4070, 1.4030.
- Above: 1.4450, 1.4520, 1.4650, 1.47, 1.4775, 1.4882, 1.4940
- The 1.4450 line is weaker now, and serves as a pivotal point. 1.4520 is important resistance.
- 1.4282 is significant support on the downside.
Euro/Dollar staying high – click on the graph to enlarge.
EUR/USD Fundamentals
- 8:00 German Ifo Business Climate. Exp. 111.2 points. Actual 108.7. This disappointment didn’t trigger reaction.
- 9:00 European Industrial New Orders. Exp. +0.6%. Actual -0.7%.
- 12:30 US Durable Goods Orders. Exp. +2.1%. Core figure exp. -0.3%.
- 13:00 Belgian NBB Business Climate. Exp. -3.4 points.
- 14:00 US OFHEO HPI. Exp. +0.2%.
* All times are GMT.
For more events later in the week, see the Euro to dollar forecast
EUR/USD Sentiment
- Sentiment lower in Germany: After the ZEW figure was weak yesterday, we got another disappointment from IFO. This goes hand in hand with the global slowdown. Perhaps the Chinese are buying euros.
- Greek bailout questioned: Finland demands collateral from Greece in order to participate in the bailout. This is causing headaches across the continent, as other countries want the same deal.
- Bernanke awaited: Tension is growing towards the speech of Ben Bernanke in Jackson Hole on Friday. Some expect him to hint about QE3 in order to stop the falls in stock markets, although this can harm the economy at this time. Stay tuned for a preview for this big event. Here are 7 scenarios for the Jackson Hole speech, with outcomes for the greenback.
- Terrible US data: The Philly Fed Index plunged to the lowest level since March 2009. Also other figures such as jobless claims and existing home sales were terrible. The bad US figures and the European banking worries sent global stock markets lower yesterday in Europe, then in the US, then in Asia, and now in Europe again.
- ECB Sterilizes Bond Buying : The ECB continues keeping yields down. The ECB already spent above 26 billion euros in the current round of buying Italian and Spanish bonds. It has managed to drain this money from the markets today. Sterilized actions are positive for the currency.
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