Into the new week and the Asian session saw only cursory interest paid to FX markets. European action was a different story with the "path of least resistance" offered by selling the Dollar. Having consolidated the US data driven gains from Friday the thinking into early Monday was that the Dollar will be hurt by the economic offerings later in the week (including CPI).
Add to the equation the hawkish ECB rhetoric from Bini Smaghi and Liebscher and EUR/USD looked to the topside. Spot stalled around the 1.3120 area (where a strike is set to expire at the NY cut at 14:00 GMT) before being bought up to 1.3180 ahead of the North American open. 1.3188 is seen as a key technical bull-trigger (the 61.8% Fibo of 1.3259 to 1.3073) and any break above this level intraday will see rates in the 1.32's looked for, should the initial momentum hold.
On the downside, stops are still seen below 1.31 with a break sub-1.3085 needed to add interest in the short-term. US data comes in the form of Mastercard Spending at 15:00 GMT and February budget numbers at 18:00 GMT.
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