EUR Trading Outlook (10-11-2014)

EUR/USD Some USD long unwinds took hold in Europe. EUR/USD lifted from the 1.2375 area to sit just below 1.2400 into the US jobs report. Algos sent EUR/USD on a wild ride after the headline NFP missed forecasts. The pair initially spiked up to 1.2443. Asian sellers capped the move and the pair quickly reversed as the market saw revisions were upbeat. The pair gave back all the gains and the Asian names bought the shorts back near 1.2380. Bear pressure persisted a bit though and a NY low of 1.2358 was hit. US bond yield got hit after the data and their slide deepened. Broad based bear pressure on the USD took hold. EUR/USD made several attempts to clear the reaction high. Several of them failed but the pullbacks became more & more shallow. With US yields unable to mount a comeback a large wave of USD sales hit the market. EUR/USD ran stops above 1.2450 and hit a 1.2470 high. A bounce for the USD saw the pair pullback and it sat near 1.2440 late in the day. there is little data early next week but thing might heat up later as several EZ nations see Oct CPI and the EZ releases Q3 GDP.