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29 Apr 2013
Forex: EUR/USD clings to 1.3100
FXstreet.com (Barcelona) - The shared currency is hovering over the key resistance at 1.3100 on Monday, bolstered by the increasing demand for riskier assets. Collaborating with the upside, the USD continues to suffer as market participants are still digesting the poor US GDP figures from last Friday.
“There is now a clear market consensus in favour of an ECB rate cut on Thursday; a view we subscribe to. In the Bloomberg survey around 61% of forecasters favour a move and, if this week’s economic data are soft, it is possible that the conviction behind this expectation will grow”, suggested Jane Foley, Strategist at Rabobank.
At the moment, the cross is up 0.38% at 1.3098 and a break above 1.3130 (high Apr.19) would aim for 1.3202 (high Apr.16) and then 1.3229 (50% of Feb-Apr slide).
On the flip side, support levels align at 1.2988 (low Apr.25) ahead of 1.2954 (low Apr.24) and finally 1.2948 (MA200d).
“There is now a clear market consensus in favour of an ECB rate cut on Thursday; a view we subscribe to. In the Bloomberg survey around 61% of forecasters favour a move and, if this week’s economic data are soft, it is possible that the conviction behind this expectation will grow”, suggested Jane Foley, Strategist at Rabobank.
At the moment, the cross is up 0.38% at 1.3098 and a break above 1.3130 (high Apr.19) would aim for 1.3202 (high Apr.16) and then 1.3229 (50% of Feb-Apr slide).
On the flip side, support levels align at 1.2988 (low Apr.25) ahead of 1.2954 (low Apr.24) and finally 1.2948 (MA200d).