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

    Fed Fear Builds USD, Greece Unnerves the Euro but S&P Yet to Collapse

  2. Forex News

    A glance at the strong dollar and implications - BBH

  3. Forex News

    EUR/USD: Extraordinary price action - Rabobank

  4. Forex News

    Wall Street closed: Choppy closing Friday in US stocks

  5. Forex News

    EUR/USD has room to the upside to go - TDS

Trading Center