9 Dec 2014
EUR is off yesterday’s multiyear low – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that EUR has climbed off its yesterday’s lows of 1.2247 to trade around Friday’s open, a break above which would warn of a temporary upside risk.
Key Quotes
“Fundamental data for the Eurozone was light; however Germany released a mixed trade surplus, which was flat at €21.9bn. Exports dropped –0.5%m/m, better than expected but not reflective of a paticularly robust backdrop; while imports fell more than expected, declining –3.1%m/m. The IMF’s Largarde repeated that the combination of low growth and low inflation can prove a toxic mix.”
“EURUSD short‐term technicals: bearish—but the divergence between spot and the MACD is a warning signal that provides opportunity for profit taking. Support lies at the recent low of 1.22647, while resistance comes in at Friday’s open of 1.2379. A close above this level would open up a near-term test to the 50-day MA at 1.2554.”
Key Quotes
“Fundamental data for the Eurozone was light; however Germany released a mixed trade surplus, which was flat at €21.9bn. Exports dropped –0.5%m/m, better than expected but not reflective of a paticularly robust backdrop; while imports fell more than expected, declining –3.1%m/m. The IMF’s Largarde repeated that the combination of low growth and low inflation can prove a toxic mix.”
“EURUSD short‐term technicals: bearish—but the divergence between spot and the MACD is a warning signal that provides opportunity for profit taking. Support lies at the recent low of 1.22647, while resistance comes in at Friday’s open of 1.2379. A close above this level would open up a near-term test to the 50-day MA at 1.2554.”