Trading in Europe on the single currency continues to find itself in a sideways trend. The EUR/USD pair has been unable to show any significant recovery from the Asian low of 1.0570. Interest in the single currency has all but faded as the rate approaches 1.0595.
There’s some additional pressure on the Euro coming from growing US bond yields and a falling EUR/GBP cross. Growing concern among market participants in the wake of the French election is having a positive effect of the British currency. At the time of writing, the EUR/USD pair is trading at 1.0581 and the GBP/USD at 1.2403.
The US Federal Reserve is at the centre of attention today as their head, Janet Yellen, is scheduled to speak tonight. Her speech is given greater importance than might otherwise be expected due to a lack of data coming from Europe or the USA today. On Tuesday, the UK will publish its inflation figures and Germany will publish its ZEW index. On Wednesday, the Bank of England’s governor, Mark Carney, is scheduled to speak.
The EUR/USD rate is currently 15 pips below the trend line. It’s very important where the Euro closes against the US dollar. If the Euro is unsuccessful in returning higher than 1.0596 level, it will open the way for sellers to two new levels: 1.0530 and 1.0430.
On Mondays, traders tend to correct the positions they left open over the weekend. In this light, they often ignore the news as well as statements from central bank members.
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