Forex: EUR/USD around 1.3190 ahead of US data

The bloc currency remains stuck in levels below 1.3200 on Thursday, ahead of the US inflation figures, labor market data and Markit manufacturing PMI.

Softer-than-expected results from PMI prints in the euro area have eclipsed the positive outcome from the Spanish auction, extending the negative trend in yields.

At the moment, EUR/USD is down 0.66% at 1.3195 with the next support levels lined up at 1.3039 (low Jan.10) followed by 1.3018 (low Jan.7) and then 1.2998 (low Jan.4).
On the other hand, a break above 1.3367 (MA10d) would bring 1.3440 (MA21d) and finally 1.3456 (high Feb.14).

Feb 21, 2013

Forex: USD/JPY finds support at 92.80 to bounce to 93.00

The USD/JPY extended its Asian session decline throughout European time, falling to as low as 92.80, where it found support to bounce back to 93.00 area. The pair had spiked to 94.00 psychological level on yesterday’s FOMC minutes.

Forex Flash: Eurozone remains optimistic despite reform challenges – Goldman Sachs

According to the Economics Research Team at Goldman Sachs, “Our analysis has highlighted the potential medium-term benefits of successful structural reform. Implementing such reform may be politically challenging, notwithstanding its economic benefits. However, our results suggest that, somewhat paradoxically, the present context gives the Euro area periphery as good a window of opportunity as previous episodes of success to undertake structural reforms and support the real exchange rate adjustments that are still needed. The climate of economic and political difficulty reinforces the need for reform and creates the pressure to undertake difficult changes.”