Continued euro support
Daily Look

Continued euro support

Idea of the Day

EURJPY was clearly the place to be long last week, with a solid push from just below 132 to above 135. A strong performance from Japanese stocks ensured that the yen weakened, with USDJPY moving back above the 100 level for the first time in 2 months. As for the euro, there remains decent underlying support for the currency, as we outlined in our blog of last week. This is dependent on expectations of further policy action not gathering pace too much and with four ECB speakers on the agenda today, the market will be listening closely as to the other options the ECB may be considering and how likely they are to be introduced in the coming months. The previous trendline support for EURUSD (drawn from 10th July low) has offered decent resistance in recent sessions. A push above would be taken positively overall (currently sits at 1.3518).

20131118 Table_0

Data/Event Risks

EUR:  There are a spread of ECB speakers due today which will be worth keeping an ear open for, including Mersch, JAzbec , Nowotny and Asmussen. Even though a rate cut has been delivered, the market is sensitive to any signs of what further measures the ECB could introduce.

Latest FX News

GBP:  Sterling’s difficulty in pushing above the 1.60 level vs. the dollar on a sustained basis continues to be the main focus. Last week’s data was not that supportive for the sterling, but a decent recovery was achieved in the latter half.

AUD: Something of resurgence in the Aussie overnight, back above the 0.9400 area. More positive noise over long-term policy in China has offered some support in the background, but this is from modestly over-sold conditions with the Aussie having dragged behind the other majors (besides the yen) over the past week.

JPY:  The Asia session has seen USDJPY bump along the 100 level, with stocks a lot more steady than was the case last week. Charts suggest that the yen actually held up pretty well, given the extent of the gains in stocks, so some further yen weakness could well be seen if stocks move higher.

Further reading:

GOLD: Remains Biased To The Downside

EUR/USD: Halts Weakness, Bounces Higher


FxPro - Forex Broker

FxPro - Forex Broker

Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss.