EUR Trading Outlook (19-11-2014)

EUR/USD Europe lifted the pair towards the 1.2540 area as USD longs lightened up after USD/JPY couldn’t break the 2014 high. A slight dip saw the pair near 1.2500 into NY’s open. The dip was bought as the USD’s weakness continued and US bond yields slipped a bit. The pair again lifted towards the overnight high but couldn’t break it. The USD recovered and JPY weakened to send EUR/JPY back above 146.50. This saw EUR/USD torn between a rising USD and rising EUR/JPY. The pair ranged 1.2502/1.2532 for a while before eventually making a marginal new high at 1.2545. Little pullback from the high was seen as EUR stayed firm against most major currencies even as EUR/CHF hovered near recent lows. Late in the day EUR/USD sat just above 1.2535. There is little data out of the EZ to drive price action so traders are likely to look to the BoJ and FOMC minutes for their cues. EUR/USD activity may be light until then.