10 Nov 2013
Flash: Did market run ahead of itself? Risk for a setback in USD - BBH
FXstreet.com (Barcelona) - The shocking decision by the ECB to cut rates coupled with an upbeat NFP releases last Friday, prompted the US dollar to top the climber's board in the FX market last week, as Marc Chandler, Global Head of Currency Strategy at BBH noites, "the market appears to have run ahead of itself and the immediate risk is for a setback in the dollar."
Key Quotes
"The US jobs data failed to drive the euro below the ECB-spurred lows, which correspond to a (50%) retracement of the rally since July (~$1.3290)."
"The euro traded below its 100-D MA for the first time in two months, though was unable to close the NY session below there."
"The euro is also flirting with the lower of its Bollinger Bands set at two standard deviations below the 20-day moving average."
"Technical indicators allow scope for further euro losses, but they may prove limited before a bounce. Resistance is now seen in the $1.3450-80 area."
Key Quotes
"The US jobs data failed to drive the euro below the ECB-spurred lows, which correspond to a (50%) retracement of the rally since July (~$1.3290)."
"The euro traded below its 100-D MA for the first time in two months, though was unable to close the NY session below there."
"The euro is also flirting with the lower of its Bollinger Bands set at two standard deviations below the 20-day moving average."
"Technical indicators allow scope for further euro losses, but they may prove limited before a bounce. Resistance is now seen in the $1.3450-80 area."