26 May 2015
EUR/USD dipping into very negative territory
FXStreet (Guatemala) - EUR/USD is currently trading 1.0944 with a high of 1.0982 and a low of 1.0934.
EUR/USD offers have landed in Asia and taking the major below the consolidating support zone of European and US session. The market is geared up for further downside with the ECB's QE programme and subsequent ramifications, uncertainty of a Grexit, while IMF payments are due in early June and a growing number of Greek officials are telling the markets that there is the possibility that these will not be met.
Also, new sentiment on the table in the EZ comes following Spain’s local election results. These were hinting to challenges for PM Rajoy’s PP ahead of December’s general election. Eric Theoret, CFA, CMT Currency Strategist at Scotiabank explained that the rising support for anti-establishment, anti-austerity policy has weighed on sentiment and delivered a 2% decline in Spain’s IBEX while also providing for a 5bpt rise in Spain’s 10Y yield.
Then of course there is the backdrop of Yellen's on going bullishness for the US economic recovery amongst Fed hype with the majority of members seeking a rate hike before the year is out. EUR/USD is technically in highly bearish territory with closes below the 1.10 handle bringing our attentions fully on the downside. We have some likely support at the 55 day ma just ahead of the 1.09 round number before the 1.0843 61.8% Fibo. To the upside, there is a long way to go until we meet last week's closing slide from 1.1156.
EUR/USD offers have landed in Asia and taking the major below the consolidating support zone of European and US session. The market is geared up for further downside with the ECB's QE programme and subsequent ramifications, uncertainty of a Grexit, while IMF payments are due in early June and a growing number of Greek officials are telling the markets that there is the possibility that these will not be met.
Also, new sentiment on the table in the EZ comes following Spain’s local election results. These were hinting to challenges for PM Rajoy’s PP ahead of December’s general election. Eric Theoret, CFA, CMT Currency Strategist at Scotiabank explained that the rising support for anti-establishment, anti-austerity policy has weighed on sentiment and delivered a 2% decline in Spain’s IBEX while also providing for a 5bpt rise in Spain’s 10Y yield.
Then of course there is the backdrop of Yellen's on going bullishness for the US economic recovery amongst Fed hype with the majority of members seeking a rate hike before the year is out. EUR/USD is technically in highly bearish territory with closes below the 1.10 handle bringing our attentions fully on the downside. We have some likely support at the 55 day ma just ahead of the 1.09 round number before the 1.0843 61.8% Fibo. To the upside, there is a long way to go until we meet last week's closing slide from 1.1156.