Stops in EUR/USD around 1.3185 have been tripped as the Euro continues to be sold in the wake of the recent Euro Zone data. EZ HICP was confirmed at -0.5% M/M but on an annualized basis the index fell further, from the +1.9% initially reported to +1.8% Y/Y. Unemployment fell to a fresh all-time series low at 7.4%, from 7.5% in December, but it is the inflation fall that has dented the Euro.
Elsewhere, the news that US Consumer giant Procter & Gamble has withdrawn the Euro tranche of its USD4Bln USD and EUR bond issues will have dented the Euro. Leads cite "unstable market conditions" behind the writing off of the 10 and 20-Year bonds.
As a result the estimated 2Bln portion of the USD 4Bln total will have gone unused and could have to be unloaded back into the market as players look to use the liquidity elsewhere. EUR/USD has printed 1.3182 in the latest move lower but bids into 1.3180 are still attempting to limit further weakness. A break below 1.3175 will be seen as the next short-term trigger to further weakness.
No comments:
Post a Comment