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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EUR
EUR/USD is running into some resistance above 1.0050. Note the pair has struggled above this level going back to late August. Beyond this region is the 50 day MA, which comes in at 1.0120. However, since March of this year moves back towards or slightly above this MA level have ultimately proven to be good selling opportunities, see the first chart below.
Fig 1: EUR/USD & Key MAs
Source: MNI - Market News/Bloomberg
- The near term bias may be to take the pair higher. Higher frequency indicators like yield spreads and terms of trade are painting a more positive picture.
- The second chart below plots EUR/USD versus the EU-US 2yr swap spread.
- The cautionary point for the market may come from key meetings taking place later today and over the weekend. Today's focus will be on energy, but broader topics will be discussed over the weekend, see this link for more details.
Fig 2: EUR/USD & EU-US 2yr Swap Spread
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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