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17 Mar 2014
EUR/USD clings to 1.3900
FXStreet (Edinburgh) - The shared currency is now trimming earlier losses, lifting the EUR/USD back to the proximities of the 1.3900 handle on Monday.
EUR/USD no reaction post-EMU CPI
Spot keeps the trade within a narrow range at the start of the week, despite softer than expected EMU’s final CPI figures for the month of February, with consumer prices expanding at an annual pace of 0.7% vs. 0.8% forecasted. In the opinion of Martin van Vliet, Analyst at ING Bank NV, “To be sure, the downward revision to the February inflation figures is unlikely to be enough to trigger further near term monetary easing. This will also require a deterioration of the activity and/ or a further significant strengthening of the euro. That being said, today’s CPI figures are a clear reminder that low inflation may have become the new normal for the Eurozone – which certainly won’t make it easy for some countries to reduce their debt overhangs”.
EUR/USD key levels
The pair is now losing 0.13% at 1.3896 with the next support at 1.3852 (10-d MA) followed by 1.3848 (low Mar.14) and then 1.3843 (low Mar.12). On the upside, a breakout of 1.3925 (high Mar.17) would aim for 1.3938 (high Mar.14) and finally 1.3967 (2014 high Mar.13).
EUR/USD no reaction post-EMU CPI
Spot keeps the trade within a narrow range at the start of the week, despite softer than expected EMU’s final CPI figures for the month of February, with consumer prices expanding at an annual pace of 0.7% vs. 0.8% forecasted. In the opinion of Martin van Vliet, Analyst at ING Bank NV, “To be sure, the downward revision to the February inflation figures is unlikely to be enough to trigger further near term monetary easing. This will also require a deterioration of the activity and/ or a further significant strengthening of the euro. That being said, today’s CPI figures are a clear reminder that low inflation may have become the new normal for the Eurozone – which certainly won’t make it easy for some countries to reduce their debt overhangs”.
EUR/USD key levels
The pair is now losing 0.13% at 1.3896 with the next support at 1.3852 (10-d MA) followed by 1.3848 (low Mar.14) and then 1.3843 (low Mar.12). On the upside, a breakout of 1.3925 (high Mar.17) would aim for 1.3938 (high Mar.14) and finally 1.3967 (2014 high Mar.13).