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14 Jan 2015
EUR/USD back below 1.1800 on Beige Book
FXStreet (Edinburgh) - The shared currency left the area of session highs beyond 1.1840, dragging EUR/USD back below the key 1.1800 handle.
EUR/USD muted after the Fed’s Beige Book
The Fed’s Beige Book showed some concern regarding the impact of lower crude oil prices and the current strong level of the USD, while it stressed that the US economy continued to expand in the last part of 2014. In the meantime and moving forward to Thursday’s docket, Spanish consumer prices are due ahead of EMU’s trade balance figures for the month of November (s.a.€21.3 billion exp.) and the speech by BuBa’s J.Weidmann. Across the pond, the usual Initial Claims plus the Philly Fed Manufacturing Survey (20.0 exp.) will take centre stage. Camilla Sutton, Chief FX Strategist at Scotiabank, argued “all studies warn of downside risk with technical levels fairly light until the 2005 lows of 1.1640. We favour being short EURUSD”.
EUR/USD key levels
The pair is now up 0.11% at 1.1785 with the next hurdle at 1.1862 (200-h MA) followed by 1.1871 (high Jan.12) and then 1.1897 (high Jan.7). On the downside, a break below 1.1700 (psychological level) would expose 1.1640 (low Nov. 2005) and finally 1.1376 (low Nov.2003).
EUR/USD muted after the Fed’s Beige Book
The Fed’s Beige Book showed some concern regarding the impact of lower crude oil prices and the current strong level of the USD, while it stressed that the US economy continued to expand in the last part of 2014. In the meantime and moving forward to Thursday’s docket, Spanish consumer prices are due ahead of EMU’s trade balance figures for the month of November (s.a.€21.3 billion exp.) and the speech by BuBa’s J.Weidmann. Across the pond, the usual Initial Claims plus the Philly Fed Manufacturing Survey (20.0 exp.) will take centre stage. Camilla Sutton, Chief FX Strategist at Scotiabank, argued “all studies warn of downside risk with technical levels fairly light until the 2005 lows of 1.1640. We favour being short EURUSD”.
EUR/USD key levels
The pair is now up 0.11% at 1.1785 with the next hurdle at 1.1862 (200-h MA) followed by 1.1871 (high Jan.12) and then 1.1897 (high Jan.7). On the downside, a break below 1.1700 (psychological level) would expose 1.1640 (low Nov. 2005) and finally 1.1376 (low Nov.2003).