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4 Apr 2013
Forex: EUR/USD in weekly highs above 1.2900
FXstreet.com (Barcelona) - The bloc currency is printing fresh weekly highs in the area of 1.2910/15 as risk appetite is swelling amongst investors. Curious day for the cross, as it dropped to new 2013 lows around 1.2740 on President Draghi’s comments, just to revert the trend soon after to the current region of 1.2925/30.
“For the ECB, inflation is decelerating and likely to fall further into next year. But with the policy rate being left unchanged, the real interest rate… is actually rising over time. So the ECB’s waiting is not neutral, it is hurting the economy”, argued Rich Kelly, FX Strategist at TD Securities.
At the moment, the cross is up 0.68% at 1.2936 with the next resistance at 1.3050 (high Mar.25).
On the flip side, a breakdown of 1.2730 (low Nov.19) would expose 1.2680 (61.85 of 1.2042-13711) and then 1.2662 (low Nov.13)
“For the ECB, inflation is decelerating and likely to fall further into next year. But with the policy rate being left unchanged, the real interest rate… is actually rising over time. So the ECB’s waiting is not neutral, it is hurting the economy”, argued Rich Kelly, FX Strategist at TD Securities.
At the moment, the cross is up 0.68% at 1.2936 with the next resistance at 1.3050 (high Mar.25).
On the flip side, a breakdown of 1.2730 (low Nov.19) would expose 1.2680 (61.85 of 1.2042-13711) and then 1.2662 (low Nov.13)