EUR Trading Outlook (08-07-2014)

EUR/USD Europe aided a short-term recovery for the pair as they walked in with the pair just above the late-June lows. The lift had the pair just below 1.3600 into NY’s open. Speculation of reserve manager diversification and noted corporate buying were the main drivers for the lift. Early NY saw a small dip but a CB buyer emerged and pushed the pair back above 1.3600. Soft US bond yields and a generally weak USD allowed for further small gains. A high of 1.3609 was hit. Little pullback was seen and the pair sat just below the high late in the day. There is little in the way of economic data this week for the EZ and US. This may see the pair linger within recent ranges and any EUR/USD moves are likely to take direction from the crosses.