Euro Pursuing The Rally By: Hugo Murphy, Trader After closing the day on the key resistance level of 1.3900, the Euro continued its rally higher to a 2 ½ year high of 1.3966. As said yesterday, this move was done more in terms of positioning than event related. The market loves the Euro ever since the 2008 trend line break at 1.3800. It’s even been said that it had a safe haven status, which I find very weird since there may be a possible war in their backyard. Market participants flowing to buy cheaper European assets vs. U.S. assets seems like a better suited reason behind the move. Negative news continued to pile up for China with Industrial Output (worst since 2009) and Retail Sales (3-year low) coming below expectations. The market impact wasn’t catastrophic this time with copper and the majority of stock markets stable. The Kiwi (first developed country to raise rates, 0.25%) and Aussie (posted third best employment month, ever, with 47.3k jobs) took center stage and both are outperforming. This might have eclipsed the Chinese’s data. Read the full Daily Forex: hub.am/1lZNjln
Posted on: Thu, 13 Mar 2014 14:30:04 +0000
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