Euro/dollar continues trading in the well known range and even sticks a narrower one. The all important and extraordinary Eurogroup meeting about Greece is just a day away and the sides seem to be digging into their positions.
Will we start hearing different statements already today? If not, these narrow trading ranges could explode once news comes out.
Pressure on Greece mounts from Moody’s, which downgraded 5 Greek banks to just above a default level with a warning to further cut the credit rating. Here’s what the credit rating agency had to say: “A possible deadlock in the government’s negotiations with official creditors could place at risk its own liquidity and funding needs, limiting its ability to support the banks in case of need”
Pressure on Germany came from US President Barack Obama that met German Chancellor in the White House, but did not seem able to change her mind, at least not in public and / or not now.
Contrary to worries about Greece, we are actually hearing good economic news from the euro-zone. France reported a rise of 1.5% in industrial production for the month of December, 3 times the early expectations. Output dropped 0.2% in November.
In the US, FOMC member Jeffery Lacker is set to speak and the JOLTS job openings is expected to garner attention: a rise to above 5 million is expected in the Fed’s favorite jobs indicator.
EUR/USD is confined to the 1.1290 to 1.1373 range and is practically trading only between 1.1320 to 1.1350.
Below 1.1290, we find the round number of 1.12 as further support. Above, 1.1460 looms.
Opinion: A Case For A EUR/USD Rebound & A Strategy To Sell It – NAB
Here is the chart:
Share
