The Euro suffered in Europe as speculators bought on the rumor that the latest ZEW would be 30.0 but sold when in fact the headline came in close to consensus at 24.0. 1.3435 is back in focus but bids remain in play. Technically, EUR/USD failed to sustain its break above the initial retracement point of 1.3473.
The 1.3476 European high removed the 38.2% Fibo of 1.3530 to 1.3437 with the 61.8% level at 1.3494 now eyed above. This failure should add weight to the downside and a return towards 1.3380 is now eyed by many. However, one German name does not expect the pair to break below this level, instead they foresee EUR/USD building a longer-term base here. US data in North American trading sees early weekly data from ICSC/UBS on Chain Store Sales with Redbook Retail Sales quickly following.
However, the attention rests on the 14:00 GMT Richmond May Fed data and the Bernanke and Lacker comments set for 22:00 & 23:30 GMT respectively. The ECB's Mersch is set to talk at 13:00 GMT but having seen various ECB comments this week already talk up vigilance there may be little to be added to this argument at present.
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