EUR Trading Outlook (30-01-2015)

EUR/USD The pair held to a relatively tight range but it did see decent movement within NY’s 1.12791.1368 range. Early NY saw the pair just below 1.1300. Buying took hold in the morning as EUR disregarded broad USD strength. EUR was well bid vs. other major currencies, especially CHF, AUD, CAD and NZD. This saw EUR/USD break Europe’s 1.1327 high. The pair got an added boost after the Danish CB cut rates again to give EUR/DKK a boost. EUR/USD went on to hit the day’s high. IT began sliding as USD strength persisted and USD/JPY ran 118.25 stops. The slide then accelerated as ECB’s Coeure noted to DJN that QE will work and that the ECB acted on QE due to deteriorating inflation expectations. NY’s low was then hit but the pair bounced as the USD’s run abated. Late in the day EUR/USD sat near 1.1305. EZ Jan CPI and US Q4 GDP are the big risks for the market tomorrow. A Soft CPI and strong GDP should send EUR/USD towards the lows again.