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16 Sep 2013
EUR/USD anchored around 1.3350
FXstreet.com (Edinburgh) -The EUR/USD remains locked around the mid 1.33s on Monday, as market participants keep digesting the Summers’s news amidst prevailing risk-on tone.
EUR/USD focus on the FOMC meeting
Undoubtedly the biggest event of the week will be the FOMC gathering due on Wednesday, with market consensus broadly favouring a $5-$10 billion taper and a subsequent dovish tone by Chief Bernanke. Jens Peter Sorensen, Chief Analyst at Danske Bank, commented, “Focus is likely now to turn to the pace of tapering and whether the current (in our view somewhat aggressive) pricing of eventual Fed hikes is warranted. This could induce a temporary period of USD weakness, not least after Larry Summers (perceived by some as potentially less dovish than now-favourite Yellen) has withdrawn from the Fed chairman race”.
EUR/USD levels to watch
As of writing the pair is up 0.44% at 1.3353 with the next hurdle at 1.3399 (high Aug.28) ahead of 1.3410 (high Aug.23) and then 1.3427 (high Aug.21). On the flip side, a breakdown of 1.3298 (low Sep.16) would open the door to 1.3254 (low Sep.13) and finally 1.3247 (MA10d).
EUR/USD focus on the FOMC meeting
Undoubtedly the biggest event of the week will be the FOMC gathering due on Wednesday, with market consensus broadly favouring a $5-$10 billion taper and a subsequent dovish tone by Chief Bernanke. Jens Peter Sorensen, Chief Analyst at Danske Bank, commented, “Focus is likely now to turn to the pace of tapering and whether the current (in our view somewhat aggressive) pricing of eventual Fed hikes is warranted. This could induce a temporary period of USD weakness, not least after Larry Summers (perceived by some as potentially less dovish than now-favourite Yellen) has withdrawn from the Fed chairman race”.
EUR/USD levels to watch
As of writing the pair is up 0.44% at 1.3353 with the next hurdle at 1.3399 (high Aug.28) ahead of 1.3410 (high Aug.23) and then 1.3427 (high Aug.21). On the flip side, a breakdown of 1.3298 (low Sep.16) would open the door to 1.3254 (low Sep.13) and finally 1.3247 (MA10d).