EUR Trading Outlook (27-05-2014)

EUR/USD Post IFO setback hit 1.3616 Fri and 1.3615 in Asia today. Early GFK consumer sentiment for June as expected 8.5. Pair up from 1.3620 to 45 in early London after Constancio said ECB speakers would not discuss policy today, although Draghi still went ahead in Portugal, but said nothing new. EZ equity gains to 6yr highs played their part in thin conditions, as did the Ukraine presidential election, with exit polls suggesting Poroshenko clear winner. Decent bids into option barriers at 1.3600 and offers noted 1.3650. Technical resistance at 1.3658 and 1.3688 (highs Thrs/Fri). 200dma is at 1.3639. Today/Tues sees around EUR 1bln 1.3620 option expiries.