Forex: EUR/USD retraces jump on Merkel-Wen comments
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EUR/USD
FXstreet.com (Barcelona) - The market quickly retraced the rally ahead of the European session. The jump to 1.2561 high was based on German Chancellor Angela Merkel comments in China, defending the "absolute political will" to stabilize the Euro. From the Chinese side, Premier Wen showed interest in buying European bonds.
The EURUSD is back at 1.2540 and could extend lower to the opening price of 1.2530. The preliminary release of the Spanish Harmonized Index of Consumer Prices indicates rising inflation from 2.2% to 2.7% in August.
"It continues to hold onto the short squeeze gains seen on Monday and only a fall through the short term uptrend at 1.2382 will alleviate upside pressure and suggest the medium term downtrend has resumed", wrote Commerzbank analyst Karen Jones.
The EURUSD is back at 1.2540 and could extend lower to the opening price of 1.2530. The preliminary release of the Spanish Harmonized Index of Consumer Prices indicates rising inflation from 2.2% to 2.7% in August.
"It continues to hold onto the short squeeze gains seen on Monday and only a fall through the short term uptrend at 1.2382 will alleviate upside pressure and suggest the medium term downtrend has resumed", wrote Commerzbank analyst Karen Jones.
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