Dealers are content to "buy-the-dips" so long as support in the 1.3275/80 region holds the line. The market continues to factor in a pronounced US slowdown later this year, just as they have the prior two years.
Housing remains the stress-point for USD bears with lower prices cutting off the home-equity loan spigot and retail sales and employment all to falter. Could happen, but like the last few years, most remain skeptical. The global economy remains strong and awash in liquidity.
A sustained downturn seems unlikely until liquidity conditions tighten materially. EUR/USD offers stretch up through 1.3325 near-term with more toward 1.3340/50. Options-related interest is seen on the offer toward 1.3350 and on the bid to 1.3280 as the protectors of 1.3350 barriers reload on weakness.
No comments:
Post a Comment