EUR/USD failed at 1.3623 into European action and the price had soon been sold back to the 1.36 mark. Bids into 1.3585/90 level from option buyers and an Eastern European player were seen protecting the 1.3590 strike but as dealers talked of European central bank selling the EUR downward momentum accelerated.
Euro cross sales (EUR/JPY in particular) weighed on EUR/USD and spot removed stops in the break below 1.3580 with 1.3570 support stalling the pair into the German data. However, a weaker than expected release saw the Euro re-sold with Asian central bank and option related bids into the 1.3550 area now seen supporting the price ahead of the NorAm open. Option dealers also note another expiry at 1.3550 intraday.
Looking ahead, the FOMC may be weighing on broader sentiment but intraday and there are still event-risks in the pipeline. 12:55 GMT sees the Redbook release Retail Sales Index while at 14:00 GMT the Commerce Department releases wholesale inventories for March. Economists forecast a +0.4% reading on the month while after the European close the ISM unveil their semiannual forecasts.
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