Forex: EUR/USD again at 1.3000 after Spanish debt auctions

Having gone as high as 1.3057 as the US session closed, the EUR/USD gave in to the magnetism of the psychological level at 1.3000 and moved there on the European session. 1.3020 is keeping the pair from bouncing, and the EUR/USD remains subdued to the 1.3000 mark.

The Spanish 12 and 6-month debt auctions found improving yields at 1.363% (from 1.548%) and 0.794% (from 0.859%), respectively. Greek industrial production fell from -0.9% to -4.8% in January.

“The recent high at 1.3054 is probably the end of the consolidation pattern above 1.2953 and my outlook here is bearish, for a slide towards 1.2880”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to initial resistance at 1.3070-80 ahead of 1.3133 high.

Mar 12, 2013

Fundamental Morning Wrap: New BoJ team to hit the ground running?

A quiet European session has translated into a quiet morning for institutional research today, with the bulk of focus falling upon the overnight release of the BoJ minutes, which showed a leaning towards further aggressive APP easing and possibly an early BoJ meeting once the new team take the helm. In the US, eyes are on the Republican Budget proposal which will include $4.6trn of cuts over the coming decade, just ahead of a prospective Goverment shutdown, while in the UK, poor data builds expectations of pending BoE easing.

Forex Flash: Sizable miss for the first UK hard data of 2013 – TD Securities

UK industrial and manufacturing production fell even more that consensus expectations, “but we would caution that the sticker shock is much worse than the underlying trend in the data that remains close to flat”, wrote analyst Tim Davis.