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TEST, PLEASE IGNORE

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Germany Lock Down and NZD Dent EUR/USD Recovery

EUR
MNI (London)
  • A tentative move back into risk Monday allowed EUR/USD to recover away from its Asia low of $1.1872, stepping its way to an eventual high of $1.1947 in post fix trade before closing the day around $1.1933.
  • Traders highlighted comments from Fed Barkin on tapering, noted that as economy is far away from full employment current accommodation remains appropriate.
  • Risk outlook took a knock back in Asia as traders reacted to the overnight announcement that Germany will lockdown for 5-days April1-5. This was added to by the negative reaction in NZD to the NZ Govt announcement to cap house prices (Govt to remove tax deductibility of loan interest for investors).
  • EUR/USD eased to $1.1929 in early Asia, edged to $1.1941 into the Tokyo open before dropping back on reported EUR/JPY sales. NZD/USD sales acted to press rate to a low of $1.1920 ahead of the European open.
  • Support $1.1920, stronger between $1.1900/1.1890 then $1.1872/69, with the 200-dma now edging up to $1.1861. Resistance into $1.1950 ahead of $1.1960/65, stronger into $1.1990.
  • ECB Villeroy 1000GMT, Bk of Spain publishes economic outlook 1230GMT.
  • US New Home Sales and Richmond Fed 1400GMT.
  • Fed speak in focus, Fed Powell and US Tr.Sec Yellen appear before House Panel on CARES Act at 1600GMT. Other speakers include Bullard 1300GMT, Bostic 1410GMT, Barkin 1500GMT, Brainard 1730GMT and 1945GMT, Williams 1845GMT.
  • MNI Techs: EURUSD traded higher yesterday however despite this, a bearish risk remains present. The sell-off Thursday / Friday resulted in a break of 1.1883, Mar 16 low. This strengthens a short-term bearish theme and exposes key support at 1.1836, Mar 9 low. Note, the 200-day MA lies just above at 1.1861. A break of 1.1836 and of the MA, would confirm a resumption of this year's downtrend and open 1.1800. Key resistance is seen at 1.1990, Mar 11 high.
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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