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3 Apr 2013
Forex: EUR/USD back to 1.2845/50
FXstreet.com (Barcelona) - The euro is now retracing ground after another attempt to reach the 200-day moving average around 1.2880/90, although this time the up-move faltered in the vicinity of 1.2870.
The sudden buying interest was triggered after the US ADP report came in at 158K in March, disappointing investors waiting for 200K.
“Considering that the ECB had just revised its forecasts last month, I believe that the April meeting will result in a “hold,” as another downgrade of its forecasts could provoke a reconsideration of the ECB’s credibility… As the economic divergence between the Euro-zone and the United States grows midyear, the ECB will be more open to a rate cut, likely in May or June, just not now”, assessed Christopher Vecchio, Currency Analyst at DailyFX.
As of writing, the cross is up 0.18% at 1.2841 facing the next hurdle at 1.2878 (high Apr.2) followed by 1.2890 (MA200d) and then 1.2924 (MA21d).
On the downside, a break below 1.2751 (low Mar.27) would open the door to 1.2730 (low Nov.19) and finally 1.2680 (61.8% of 1.2042-1.3711).
The sudden buying interest was triggered after the US ADP report came in at 158K in March, disappointing investors waiting for 200K.
“Considering that the ECB had just revised its forecasts last month, I believe that the April meeting will result in a “hold,” as another downgrade of its forecasts could provoke a reconsideration of the ECB’s credibility… As the economic divergence between the Euro-zone and the United States grows midyear, the ECB will be more open to a rate cut, likely in May or June, just not now”, assessed Christopher Vecchio, Currency Analyst at DailyFX.
As of writing, the cross is up 0.18% at 1.2841 facing the next hurdle at 1.2878 (high Apr.2) followed by 1.2890 (MA200d) and then 1.2924 (MA21d).
On the downside, a break below 1.2751 (low Mar.27) would open the door to 1.2730 (low Nov.19) and finally 1.2680 (61.8% of 1.2042-1.3711).