EUR Trading Outlook (10-03-2015)

EUR/USD Europe pushed the pair slightly above 1.0900 just ahead of NY’s open on the back of ECB bond buying, yield spreads narrowing a bit and light short covering. NY applied bear pressure immediately though. Traders ignored the slide in US bond yields and instead focused on overall USD strength. Real money names were again noted sellers and EUR/USD slipped to a 1.0838 low for NY. Headlines relating to Greece were largely ignored by the market as were comments by ECB’s Weidmann that questioned the ECB’s bond buying on its initial day of purchases. Some of the USD’s gains eroded in the afternoon and EUR/USD lifted back towards 1.0860 late in the day. Upcoming Asian & European session might be limited in action as there is little major data to impact the pair. China’s inflation data later on might impact a bit but it’s likely the market will wait until Thursday when several EU nations release February CPI results.