EUR/USD in ranges above 1.3600

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - The EUR/USD has remained steady in the last hours, moving sideways above 1.3600. The pair peaked during the European session at 1.3642 and then pulled back to 1.3614.

During the last six hours it has been moving in a range between 1.3614 and 1.3640, consolidating above 1.3600, headed toward the second gain in a row and to the highest daily close since June 6.

EUR/USD gains momentum, but still far from 1.40

The FOMC statement released yesterday weakened the US dollar, favoring the downside in the EUR/USD. But despite rising more than 70 pips in the last two days still remains far from May highs.

According to the Global Markets Research Team at the Bank of Tokyo Mitsubishi UFJ the recent package of monetary easing measures announced by the ECB has helped to reduce the scale of euro overvaluation, pushing the EUR/USD to the downside from near 1.4000.

“The euro is now more modestly overvalued against the US dollar by around 5%. It supports our view that the euro will likely continue to gradually weaken in the year ahead as loosening ECB policy helps to further ease euro overvaluation”, the Team affirmed.

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