EUR/USD: Euro Circling The 1.3200 Mark

on May 9, 2013

In early European trading hours, the USD was quite calm against the EUR: the pair traded at $1.3160. In early afternoon, however, the 1.3136 mark was its lowest point, followed by a correction at 1.3157, after which followed a break, pushing the EUR/USD pair currency to its current position at the 1.3137 mark. Such sideway waves could lead to a short-term bottoming of the pair. A neutral outlook seems to be holding the pair in a shallow channel.

The pair is now dipping despite the positive Germany production data that was released on Wednesday, seemingly speculatively assuming that further intervention by the European Central Bank will not take place for the moment. The enthusiasm over the Sterling did not contaminate the euro neither did low trade activity in EU stocks trigger a push for the EU common currency, which seems trapped within the 1.3130 and 1.3160 range. The 1.3160 mark failed to provide adequate support.
The Euro seems to need a catalyst, which the well-received Spanish auction failed to serve. If the release of US jobless claims tomorrow is higher for the past month, the EUR/USD pair could go up. Yet, the euro needs a major push, which does not seem to be hiding round the corner.

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