Better than March German Industrial Production data, rosy comments from Germany's Eco Min on output for future months & a German Finance Ministry statement wanting to complete talks on a European resolution mechanism by the summer break had EUR/USD lift off right out of the gate. NY spiked the pair from the 1.3125 open to a high of 1.3194. ECB's Mersch aided to fuel the rally. Mersch stated the ECB is discussing an ABS buying program (MNI) while also stating the chance of deflation is not bigger than 10%-15%. The rally was halted ahead of 1.3200 as mkt chatter touted nothing but offering interest from 1.3200 to 1.3250. Talk of large 1.3200 expiries for the NY cut tomorrow also likely aided to keep bulls in check. Intra-day players began taking profit & the pair steadily slid for most of NY's afternoon to settle near 1.3155. Bulls are encouraged that the pair again fails to hold below the 10 & 21 DMAs. Solid bidding interest 1.3030/50 aids to keep
EUR/USD above the averages. The broad 1.2950-1.3250 range prevails though and until it's broken choppy mkts & short term range traders will prevail.
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