Forex: What to do with EUR/USD? – Commerzbank, Westpac and BTMU
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EUR/USD
FXstreet.com (Barcelona) - The bloc currency is trading well into the positive territory on Monday, leaving behind the key level at 1.3000 and extending last week's upside. Positive data out of Chinese and euro zone manufacturing PMI are bolstering the momentum so far, ahead of US manufacturing data.
Karen Jones, expert at Commerzbank, argues "EURUSD has seen a strong rally overnight and has left a time zone gap back to 1.3000. This is likely to be filled ahead of any further upside attempts. The market tried resistance above 1.30 3 times over the past week. It has not sustained a break and we remain wary of failure here. The market continues to face dense resistance directly overhead in the 1.3052-1.3180 band".
The research team at the Australian bank Westpac comments "We still don't see the fuel for sustained gains beyond 1.3050/1.3100 ahead of the ECB meeting on Thursday but Spain's bond rally does provide encouragement for the euro".
According to Lee Hardman, Currency Analyst at BTMU, "The euro remains relatively stable with EURUSD having returned to the middle of its 1.27-1.33 trading range which has persisted since late September. The euro is deriving support in the near-term from the narrowing in the euro-zone sovereign credit risk premium as investor confidence in euro zone debt continues to improve".
Karen Jones, expert at Commerzbank, argues "EURUSD has seen a strong rally overnight and has left a time zone gap back to 1.3000. This is likely to be filled ahead of any further upside attempts. The market tried resistance above 1.30 3 times over the past week. It has not sustained a break and we remain wary of failure here. The market continues to face dense resistance directly overhead in the 1.3052-1.3180 band".
The research team at the Australian bank Westpac comments "We still don't see the fuel for sustained gains beyond 1.3050/1.3100 ahead of the ECB meeting on Thursday but Spain's bond rally does provide encouragement for the euro".
According to Lee Hardman, Currency Analyst at BTMU, "The euro remains relatively stable with EURUSD having returned to the middle of its 1.27-1.33 trading range which has persisted since late September. The euro is deriving support in the near-term from the narrowing in the euro-zone sovereign credit risk premium as investor confidence in euro zone debt continues to improve".
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