EUR is weak, touching fresh 8 month lows - Scotiabank

By FXstreet.com | Updated August 06, 2014 AAA

FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that the EUR is weak, having fallen to a fresh 8‐month low in the early European session.

Key Quotes:

"Economic data releases were soft and suggest that tensions with Russia are proving a weight on the outlook."

"German factory orders lived up to their typically volatile pattern, falling 3.2%m/m and –2.4%y/y; while Italian industrial production was better than expected but the economy unexpectedly contracted by –0.2%q/q and –0.3%y/y in Q2. Accordingly, leading intotomorrow’s ECB meeting there is building concern over the economic outlook in Europe. We expect a relatively dovish sounding ECB but with no policy action."

"EUR/USD short‐term technicals: bearish— all technical studies warn of downside risk, with the currency breaking to fresh 8‐month lows and trending aggressively lower. The RSI at 27 suggests oversold levels; however this warns of only a period of stability and not a change in trend. Support lies at the psychological 1.3300 while resistance comes in at today’s open of 1.3376."

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    ECB sees downside risks diminished - Westpac

  2. Forex News

    EUR/USD: Bearish bias intact - 2ndSkies

  3. Forex News

    Video: Dollar Breaks Higher Ahead of NFPs, ECB Feeds EURUSD Tumble

  4. Forex News

    EUR/USD still poised to head lower - FXCharts

  5. Forex News

    Video: Strategy for Dollar, Equity Traders Heading into NFPs

Trading Center