EUR Trading Outlook (19-02-2015)

EUR/USD Europe weighed the pair down as the USD was broadly bid. They slipped the pair from the 1.1415 area towards 1.1385 at NY’s open. NY applied further bear pressure as the market ignored the onslaught of Greek headlines and instead focused on rising US bond yields. Treasury yields added to gains from yesterday and this helped spreads widen further and push EUR/USD below the 10 & 21-DMAs. A low of 1.1334 was hit shortly before it was DJN Greece was given an ELA extension of two weeks. Reuters then reported a bit later that Greece’s CB requested 5bln EUR but was only given 3.3bln. The big move came after the Fed minutes. The Fed leaned dovish and stated many policymakers leaned towards leaving rates lower for longer due to weak inflation and other concerns. The Fed wants more evidence of continued growth & signs inflation will rise before hiking. EUR/USD spiked up on the news. A high of 1.1416 was hit as the USD and US bond yield tumbled. A late day bounce for the greenback saw the pair near 1.1385 late in the day.