Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, shares that EUR is soft as a result of building Greek uncertainty, with the pair expected to end-2015 at 1.05 levels.
Key Quotes
“EUR is flat to Friday’s close, having trading in a notably small 1.1286 to 1.1359 range during the Asian and European sessions.”
“Fundamental data was mixed with the trade balance in Germany widening on strong exports rising 3.4%m/m; while Eurozone investor confidence rose to a nine‐month high of 12.4.”
“The focus for Europe continues to be on Greece, with political uncertainty still the overriding theme. Greek 10‐years are back up to 10.8%, shifting towards their recent 11.4% high as PM Tsipras continues strike a defiant tone that is seeking to re‐negotiate the country’s bailout agreements.”
“This Wednesday Euro‐area finance ministers will meet to discuss Greece, making it a market focus. We expect EUR to trend lower over the medium term, closing 2015 at 1.05.”
“EURUSD short‐term technicals: mixed—with technical studies suggesting increased indecision in markets.”
“The MACD has generated a buy signal; today’s trading activity suggests some indecision, while the downward trend remains intact and moving averages still suggests a preference for downside risk. In this environment, we see better risk reward elsewhere.”
“Support lies at the recent closing low of 1.1204 and resistance at Friday’s open of 1.1477.”
Key Quotes
“EUR is flat to Friday’s close, having trading in a notably small 1.1286 to 1.1359 range during the Asian and European sessions.”
“Fundamental data was mixed with the trade balance in Germany widening on strong exports rising 3.4%m/m; while Eurozone investor confidence rose to a nine‐month high of 12.4.”
“The focus for Europe continues to be on Greece, with political uncertainty still the overriding theme. Greek 10‐years are back up to 10.8%, shifting towards their recent 11.4% high as PM Tsipras continues strike a defiant tone that is seeking to re‐negotiate the country’s bailout agreements.”
“This Wednesday Euro‐area finance ministers will meet to discuss Greece, making it a market focus. We expect EUR to trend lower over the medium term, closing 2015 at 1.05.”
“EURUSD short‐term technicals: mixed—with technical studies suggesting increased indecision in markets.”
“The MACD has generated a buy signal; today’s trading activity suggests some indecision, while the downward trend remains intact and moving averages still suggests a preference for downside risk. In this environment, we see better risk reward elsewhere.”
“Support lies at the recent closing low of 1.1204 and resistance at Friday’s open of 1.1477.”
