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

    Weekly Trading Forecast: FOMC, GDP, Greece and Much More Ahead

  2. Forex News

    Trading Video: Sentiment, Dollar and Euro All At-Risk Next Week

  3. Forex News

    IBM, Google and Others Take an FX Revenue Hit in Q1

  4. Forex News

    Investors are eager to know when the Federal Reserve will act - FXStreet

  5. Forex News

    US data will likely delay Fed action- Rabobank

Trading Center