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Forex pairs in this Article » EUR/USD (Edinburgh) -Sentiment around the shared currency continues to improve on Thursday, lifting the EUR/USD to fresh highs near 1.3380 as market participants leave behind the FOMC minutes.

EUR/USD supported on data

Better-than-expected manufacturing and services PMIs from the euro area confirmed this early morning the cyclical recovery in the region, despite the unexpected drop to sub 1.3300 levels in the wake of the data. While the fixed income markets continue to be behind the recent EUR strength, strategists at TD Securities commented, “EZ-US yields have been one of the key supports for EUR/USD through the July/August rally, and the 2 yr spread narrowed further overnight (EURUSD supportive). We may need to see some corroboration from the rates market in order to see a more significant move lower in the FX spot market”.

EUR/USD levels to watch

The pair is now up 0.05% at 1.3364 and a breakout of 1.3427 (high Aug.21) would aim for 1.3453 (high Aug.20) and finally 1.3456 (high Feb.14). On the downside, the initial barrier aligns at 1.3257 (MA30d) followed by 1.3222 (weekly cloud top) and then 1.3206 (low Aug.15).
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