Forex: EUR/USD steady above 1.26 ahead of one of most important days for the currency
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EUR/USD
FXstreet.com (Barcelona) - EURUSD is currently retreating from Asia-Pacific session highs at 1.2621, last at 1.2609, little moved from starting price at 1.2601, with lows at 1.2592. The pair had a nice bounce from mentioned lows by the time Hong-Kong was opening and Australian unemployment rate was released, surprisingly decreasing to 5.1% when an increase to 5.3% was expected, which has been interpreted for the market as a positive sign, pressing USD selling across the board.
London session ahead will be as busy as it can get, with plenty of risk events going on. For EUR macro related data, France will start with the unemployment figures at 05:30 GMT, followed by the Netherland's CPI a 07:30 GMT, EU's revised 2Q GDP at 09:00 GMT along with Greece unemployment numbers, and Germany factory orders at 10:00 GMT.
In the political side, EU's Van Rompuy and Barroso will speak at employment conference in Brussels at 07:00 GMT, followed 30 minutes later by EU's Barnier speaking at the European Financial Centers roundtable, while German PM Angela Merkel visits Spain's PM Rajoy in Madrid.
Then the key risk event probably of the entire month in the form of ECB interest rate statement at 11:45 GMT followed by the press conference 45 minutes later, where is expected the head of the Eurogroup Jean-Claude Juncker will attend the meeting. As reported by Laurence Norman and Todd Buell for WSJ: "In an unusual move, Jean-Claude Juncker, the head of the Eurogroup of euro zone finance ministers, announced he would attend Thursday's ECB governing council meeting. 'Mr. Juncker will present the Eurogroup's analysis of the economic and financial situation in the euro zone,' his spokesman said in an e-mail," reads the report.
And if that wasn't enough, ahead of the US session that will bring US unemployment and ISM figures, there will be several sovereign debt auctions in the EZ, included Spain, that will try to sell up to ¬ 3.5B in different bond maturities from 2 to 4 years, while France will also auction up to ¬ 8 B in bonds between 5 and 15 year maturities. Spanish 2 year yields have dramatically fallen in recent weeks from above 7% to last 3.37%, while Italian 10y yields are below 4-month lows around the 5.5%, in what it seems an anticipated move of what today is expected to be announced of unlimited bond purchases from the ECB.
Immediate resistance to the upside for EURUSD comes at recent session and yesterday's highs 1.2621/4, followed by Aug 31 and 2-month highs at 1.2637, and June 08/29 highs at 1.2670/90. For the downside, nearest term support shows at recent session lows/Aug 23 highs 1.2590, followed by Monday's lows at 1.2560, and Aug 27 highs at 1.2535.
London session ahead will be as busy as it can get, with plenty of risk events going on. For EUR macro related data, France will start with the unemployment figures at 05:30 GMT, followed by the Netherland's CPI a 07:30 GMT, EU's revised 2Q GDP at 09:00 GMT along with Greece unemployment numbers, and Germany factory orders at 10:00 GMT.
In the political side, EU's Van Rompuy and Barroso will speak at employment conference in Brussels at 07:00 GMT, followed 30 minutes later by EU's Barnier speaking at the European Financial Centers roundtable, while German PM Angela Merkel visits Spain's PM Rajoy in Madrid.
Then the key risk event probably of the entire month in the form of ECB interest rate statement at 11:45 GMT followed by the press conference 45 minutes later, where is expected the head of the Eurogroup Jean-Claude Juncker will attend the meeting. As reported by Laurence Norman and Todd Buell for WSJ: "In an unusual move, Jean-Claude Juncker, the head of the Eurogroup of euro zone finance ministers, announced he would attend Thursday's ECB governing council meeting. 'Mr. Juncker will present the Eurogroup's analysis of the economic and financial situation in the euro zone,' his spokesman said in an e-mail," reads the report.
And if that wasn't enough, ahead of the US session that will bring US unemployment and ISM figures, there will be several sovereign debt auctions in the EZ, included Spain, that will try to sell up to ¬ 3.5B in different bond maturities from 2 to 4 years, while France will also auction up to ¬ 8 B in bonds between 5 and 15 year maturities. Spanish 2 year yields have dramatically fallen in recent weeks from above 7% to last 3.37%, while Italian 10y yields are below 4-month lows around the 5.5%, in what it seems an anticipated move of what today is expected to be announced of unlimited bond purchases from the ECB.
Immediate resistance to the upside for EURUSD comes at recent session and yesterday's highs 1.2621/4, followed by Aug 31 and 2-month highs at 1.2637, and June 08/29 highs at 1.2670/90. For the downside, nearest term support shows at recent session lows/Aug 23 highs 1.2590, followed by Monday's lows at 1.2560, and Aug 27 highs at 1.2535.
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