Forex: EUR/USD above 1.2800 ahead of US and Greece
Forex pairs in this Article »
EUR/USD
FXstreet.com (Barcelona) - While bourses on both sides of the Atlantic are edging higher on Tuesday, the EURUSD is mildly higher as it trades slightly above the 1.2800 psychological level. Equities and debt markets are currently in 'risk on' mode ahead of the US election, with results coming in over the next hours, and the Greek vote on austerity due tomorrow to ensure the next aid tranche and avoid bankruptcy. Commerzbank analysts expect the EURUSD to remain pressured until Greece is saved by the donor countries. About the US election, TD Securities analysts expect a negative reaction of risk assets on a Obama win.
The French President Francois Hollande presented a stimulus package today focused on the industrial sector, including 20 billion euros in tax breaks for businesses over three years. The EURUSD is having a very volatile day, mostly down during the European session (low at 1.2764), but was able fully retrace and start edging higher on American time. As of writing, the pair jumped to 1.2819 high and still looks up. EU's Juncker admitted that the euro is still in crisis, with some countries facing real difficulties and others avoiding responsabilities. The Portuguese Finance Minister Vitor Gaspar doesn't expect quick solutions to the crisis. Meanwhile, the IMF and World Bank are helping with ideas to cut spending.
The mixed Markit Services PMI data were released during the European morning, with uplifting Spain and Italy figures contrasting with disappointing French, German and Eurozone data. The rebound retraced all losses while the EMU Producer Price Index remained unchanged at +2.7% in September. The German factory orders scared investors as data came in much worse than expected in September, contracting by -3.3% (consensus of -0.5%) on the month, allowing the annualized figure to drop to -4.7%.
"The bias here continues to be bearish below 1.2816 resistance level, and the focus is still set on 1.2740 support", wrote Deltastock.com analyst Stoyan Mihaylov, pointing to crucial resistance at 1.2843 high that could bring back a test of 1.2924 major resistance.
The French President Francois Hollande presented a stimulus package today focused on the industrial sector, including 20 billion euros in tax breaks for businesses over three years. The EURUSD is having a very volatile day, mostly down during the European session (low at 1.2764), but was able fully retrace and start edging higher on American time. As of writing, the pair jumped to 1.2819 high and still looks up. EU's Juncker admitted that the euro is still in crisis, with some countries facing real difficulties and others avoiding responsabilities. The Portuguese Finance Minister Vitor Gaspar doesn't expect quick solutions to the crisis. Meanwhile, the IMF and World Bank are helping with ideas to cut spending.
The mixed Markit Services PMI data were released during the European morning, with uplifting Spain and Italy figures contrasting with disappointing French, German and Eurozone data. The rebound retraced all losses while the EMU Producer Price Index remained unchanged at +2.7% in September. The German factory orders scared investors as data came in much worse than expected in September, contracting by -3.3% (consensus of -0.5%) on the month, allowing the annualized figure to drop to -4.7%.
"The bias here continues to be bearish below 1.2816 resistance level, and the focus is still set on 1.2740 support", wrote Deltastock.com analyst Stoyan Mihaylov, pointing to crucial resistance at 1.2843 high that could bring back a test of 1.2924 major resistance.
Free Annual Reports
