1 May 2015
What’s the sentiment around EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - EUR/USD is trading in a consolidative pattern today, managing to keep business above the 1.1200 handle.
“We expected to see a move lower in EUR/USD on the back of better US data and thus rising Fed hike expectations but as US data continue to be weak it seems investors have lost patience and are now moving to the door to protect profit on short EUR/USD exposure. Even the stronger-than-expected home sales report on Wednesday was followed by a further rise in EUR/USD suggesting that flows and positioning are now the dominant driver behind the cross”, noted analysts at Danske Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, added the pair “remains upside corrective and has reached the 38.2% retracement of the move down from December 2014 – this is located at 1.1264. The market will remain bid above the 1.1052 26th March high”.
“We expected to see a move lower in EUR/USD on the back of better US data and thus rising Fed hike expectations but as US data continue to be weak it seems investors have lost patience and are now moving to the door to protect profit on short EUR/USD exposure. Even the stronger-than-expected home sales report on Wednesday was followed by a further rise in EUR/USD suggesting that flows and positioning are now the dominant driver behind the cross”, noted analysts at Danske Bank.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, added the pair “remains upside corrective and has reached the 38.2% retracement of the move down from December 2014 – this is located at 1.1264. The market will remain bid above the 1.1052 26th March high”.