6 Jan 2016
EUR/USD jumps 30 pips on risk-off
FXStreet (Guatemala) - EUR/USD was better offered in general, but we are amongst big risk-off play today as Asia gets going with the CNY being devalued sharply and demand is coming in for the pair.
However, earlier, the with domestic data for the single currency was showing that the EZ CPI was printing at just 0.2% y/y headline and 0.9% core overnight. Sweden's Riksbank also got stuck in with FX intervention and without a board meeting. All in all, there are many concerns over global growth and the strategies at hand played by Central Bankers taking it all right to the wall. China is one concern, but so too would be stagnation in the US economy.
The euro could offer some surprises this year as time goes by, especially if the markets start to lose faith in the Federal Reserve. Data will continue to be very key in H1. The ADP report could be a prelude to the key Nonfarm Payrolls report at the end of the week where markets are looking for a 200k plus outcome to keep the faith in the Fed alive.
Technically, Valeria Bednarik, chief analyst at FXStreet explained that, "In the 4 hours chart, the technical indicators are posting tepid bounces from extreme oversold readings, but the price has declined further below its moving averages. "The daily low converges with the 61.8% retracement of the December rally, which means a break below it is no required to confirm additional declines, eyeing a 100% retracement towards the 1.0500 level later this week."
However, earlier, the with domestic data for the single currency was showing that the EZ CPI was printing at just 0.2% y/y headline and 0.9% core overnight. Sweden's Riksbank also got stuck in with FX intervention and without a board meeting. All in all, there are many concerns over global growth and the strategies at hand played by Central Bankers taking it all right to the wall. China is one concern, but so too would be stagnation in the US economy.
The euro could offer some surprises this year as time goes by, especially if the markets start to lose faith in the Federal Reserve. Data will continue to be very key in H1. The ADP report could be a prelude to the key Nonfarm Payrolls report at the end of the week where markets are looking for a 200k plus outcome to keep the faith in the Fed alive.
Technically, Valeria Bednarik, chief analyst at FXStreet explained that, "In the 4 hours chart, the technical indicators are posting tepid bounces from extreme oversold readings, but the price has declined further below its moving averages. "The daily low converges with the 61.8% retracement of the December rally, which means a break below it is no required to confirm additional declines, eyeing a 100% retracement towards the 1.0500 level later this week."