Both a UK Clearer and a Swiss bank have noted in their research notes that December should be a good month for EUR/USD. However, neither is convinced of the longer-term sustainability of the Euro gains into the new-year.
The UK name cites the 04 rally to the historical high while their counterpart Swiss note talks of the "shadow year-end" today and how the US unit could struggle but ultimately that any pressure would be reversed. Intraday spot had been bought above 1.3180 but supply into the 1.32's continues to rebuff advances. Swiss & European players sold in good size to cap early-on but trading failed to pull back and speculative buyers soon broke the pair into the 1.32's to trip stops.
However, follow-through was muted ahead of the EZ data and the price pulled back before more Europeans sold into the rally. Euro cross buying has continued to support spot on dips amid European trading. Trading continues to attempt to consolidate the push into the 1.3200's but decent supply remains into 1.3210 with the option barriers up at 1.3220/25 & 1.3250 then coming into view. Small stops 1.3210+ with better size 1.3230+.
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