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EUR/USD doesn’t give up 1.3950

FXStreet (Edinburgh) - The single currency is trading on a firm tone today, with the EUR/USD keeping the ytd highs in the 1.3950/55 band so far.

EUR/USD bolstered by risk appetite

The sentiment around the riskier assets continue to improve on Thursday against the backdrop of diminishing concerns about a Chinese slowdown and easing tensions around the Crimean peninsula (although Sunday’s referendum represents a significant downside risk). Some ECB officials tried to pour cold water on the recent ECB inaction (interpreted as hawkish-ish), however markets seem to have largely bypassed them. Data from the euro area showed higher consumer prices in France during February and an annual expansion of 0.5% from Spanish retail sales. Ahead in the day, US retail sales (0.2% headline exp.) and initial claims (330K exp.) would be in the limelight.

EUR/USD levels to watch

At the moment the pair is advancing 0.33% at 1.3950 with the next hurdles at 1.4000 and 1.4100 (psychological levels) followed by 1.4172 (high Oct.31 2011).On the flip side, a breakdown of 1.3896 (low Mar.13) would expose 1.3843 (low Mar.12) and finally 1.3834 (low Mar.11)

Flash: AUD/USD to consolidate around 0.9050 - OCBC Bank

Emmanuel Ng, FX Strategist at OCBC Bank believes that AUD/USD could consolidate around the 100D MA at 0.9050.
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Flash: EUR/USD to test 1.4000 soon?

Arne Lohmann Rasmussen, Chief Analyst at Danske Bank comments that In the FX markets the euro continues to be well supported despite the ECB comments yesterday and it seems likely that we will see a test of 1.40 very soon.
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