17 Jul 2015
EUR/USD door open for further downside
FXStreet (Edinburgh) - EUR/USD has seen its downside renewed since early Monday after Greece and its EU creditors reached a deal, as market participants perceived the long–waited outcome as a trigger for the old axiom ‘buy the rumour sell the fact’.
EUR/USD hurt by Yellen, Fed
Spot thus retreated nearly four big-figures since last week’s peaks around 1.1200 the figure, and threatens to extend the downside to the vicinity of the key support at 1.0800 in the upcoming days.
The incipient demand for the US dollar has gained traction with the days, pushing the USD Index to fresh multi-week tops. The subsequent testimony by Chairwoman J.Yellen, leaving September’s lift-off still on the table, has given extra legs to the dollar and relegated the pair to close the week in the current 1.0850/40 band.
A glance at next week’s releases places the preliminary manufacturing/services PMIs as the main event in Euroland (Friday), while the omnipresent Greek headlines will also collaborate with the usual volatility.
All in all, and with ‘Grexit’ so far averted, the focus will now return to the broader scenario of divergent monetary policies by the Federal Reserve and the European Central Bank as the main driver for the EUR/USD’s price action in the medium to longer term.
EUR/USD hurt by Yellen, Fed
Spot thus retreated nearly four big-figures since last week’s peaks around 1.1200 the figure, and threatens to extend the downside to the vicinity of the key support at 1.0800 in the upcoming days.
The incipient demand for the US dollar has gained traction with the days, pushing the USD Index to fresh multi-week tops. The subsequent testimony by Chairwoman J.Yellen, leaving September’s lift-off still on the table, has given extra legs to the dollar and relegated the pair to close the week in the current 1.0850/40 band.
A glance at next week’s releases places the preliminary manufacturing/services PMIs as the main event in Euroland (Friday), while the omnipresent Greek headlines will also collaborate with the usual volatility.
All in all, and with ‘Grexit’ so far averted, the focus will now return to the broader scenario of divergent monetary policies by the Federal Reserve and the European Central Bank as the main driver for the EUR/USD’s price action in the medium to longer term.