Forex: Fed's ease, bank supervison, enough to see a higher Euro?
FXstreet.com (Barcelona) - Despite two of the best news there could be for Euro bulls, FED expanding unlimited easing program "until it is needed", and recently announced via Reuters and confirmed by European Commission General Director Jonathan Faull: "at 4.26 am Brussels, ECOFIN Council has reached unanimous agreement on regulations creating single supervisory mechanism," as stated by his own words, the EURUSD is still sitting below the 1.31 mark, last at 1.3083.
Against the Yen though, the Euro made fresh 8-month highs, last at EURJPY 109.35, following a fifth consecutive month of gains for the cross. But which currency is not making new highs against the Yen? with investors only focused, it seems, in the upcoming general elections in Japan this weekend.
Yen is weakest currency among majors by far since early November, losing more than -5% more than next weakest currency. EURJPY wasn't as overbought as it is now, according to its daily RSI 14 indicator, as it was by mid September.
Although for a market to exists there must be two sides of the coin, even with latest FOMC balance sheet expansion, analysts at Standard Chartered Bank still think their EURUSD target of 1.27 before year-end wont change, which seems to be some way off the general consensus among market analysts...
One analysis that portrays a bullish bias for today, and as always conditional, is from FXstreet.com independent analyst Richard Lee finds a bullish case: "Closing above 1.3036 resistance, EURUSD has opened the door towards an advance to 1.3137 resistance," Richard notes, adding: "A subsequent break above the barrier would ensure a test of 1.3200 in the near term. Any retracement should be held at bay by the 1.3000 round figure," Mr Lee concludes.
With most major news for the week behind, specially the FOMC release, focus ahead will come from what the Ecofin meeting has to add to already published new agreement on ECB banking supervision as EU leaders meet yet once again at Brussels, which should bring some juicy headlines to spark a bit of volatility, which continues to move ar 5 year lows on daily average, currently around 80 pips per day for EURUSD, a 26% less than its yearly average of around 108 pips per day.
Against the Yen though, the Euro made fresh 8-month highs, last at EURJPY 109.35, following a fifth consecutive month of gains for the cross. But which currency is not making new highs against the Yen? with investors only focused, it seems, in the upcoming general elections in Japan this weekend.
Yen is weakest currency among majors by far since early November, losing more than -5% more than next weakest currency. EURJPY wasn't as overbought as it is now, according to its daily RSI 14 indicator, as it was by mid September.
Although for a market to exists there must be two sides of the coin, even with latest FOMC balance sheet expansion, analysts at Standard Chartered Bank still think their EURUSD target of 1.27 before year-end wont change, which seems to be some way off the general consensus among market analysts...
One analysis that portrays a bullish bias for today, and as always conditional, is from FXstreet.com independent analyst Richard Lee finds a bullish case: "Closing above 1.3036 resistance, EURUSD has opened the door towards an advance to 1.3137 resistance," Richard notes, adding: "A subsequent break above the barrier would ensure a test of 1.3200 in the near term. Any retracement should be held at bay by the 1.3000 round figure," Mr Lee concludes.
With most major news for the week behind, specially the FOMC release, focus ahead will come from what the Ecofin meeting has to add to already published new agreement on ECB banking supervision as EU leaders meet yet once again at Brussels, which should bring some juicy headlines to spark a bit of volatility, which continues to move ar 5 year lows on daily average, currently around 80 pips per day for EURUSD, a 26% less than its yearly average of around 108 pips per day.
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