EUR Trading Outlook (09-02-2015)

EUR/USD Europe held a tight range but the pair did have a bearish lean to it. The pair dipped to 1.1430 but bounced near 1.1450 as Ny got going. Early NY saw the lift push a bit further as the USD was soft. A NY high of 1.1466 was hit but the lift was erased in a heartbeat. The US jobs report beat forecasts and prior NFP released were revised up nicely. This had the market thinking the Fed may have its ‘patience’ tested. The USD soared and EUR/USD dived below the 200-HMA and tested near 1.1315 before any type of bounce took hold. JPY weakness pushed EUR/JPY above 135.15 and this allowed EUR/USD a bounce towards 1.1350. The lift faltered in the afternoon though and the pair near 1.1310 with little bounce. Late in the day the pair sat just under 1.1320. There is little major EZ econ data until Q4 GDP reports late in the week. The market will most likely focus on the Greek situation. The Eurogroup’s Chairman Dijsselbloem stated Greece must apply for a bailout extension on Feb 16 at the latest to keep financial backing. EUR trading into that event could prove to be volatile as the market will be jittery.