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$1.2166 Stands in Way of a $1.2180 Retest

EUR
MNI (London)
  • Recovery off the Feb17 low of $1.2023 met decent resistance at $1.2180 Tuesday which countered the upside momentum.
  • Rate corrected back to $1.2135 in early NY, recovered to $1.2166 through the 1600GMT fix before it settled between $1.2140/50 through to the close.
  • Rate saw little reaction to Fed Powell's testimony last night, remained on message, wants to see 'substantial progress' before moving away from ultra-easy monetary policy. Fed Powell reappears today 1500GMT, attention also on Fed Brainard and Clarida 1800GMT.
  • Strong reaction to the RBNZ OCR decision saw NZD, AUD and especially GBP spike higher but EUR/USD was left in the move's wake, only able to edge back to $1.2166 as it met resistance from the sell off in EUR/GBP (break of Gbp0.8600).
  • EUR/USD drifted off to $1.2144 but was seen picking up fresh demand interest ahead of Europe, rate currently trading around $1.2150.
  • Germany GDP at 0700GM, France Confidence data at 0745GMT.
  • Wednesday value is for Friday month-end and could see some US corporate USD demand emerge into the NY session.
  • Support $1.2140/35, $1.2125/20 ahead of $1.2100-1.2090. Resistance remains at $1.2166, expected to meet headwind resistance through $1.2180/1.2200.
  • Option expiries of note for today's NY cut include, $1.2090-1.2100(E1.2bln), $1.2130-35(E1.1bln-EUR puts), $1.2150-60(E1.6bln), $1.2170-90(E2.0bln-EUR puts), $1.2200-10(E728mln)
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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