EUR Trading Outlook (09-04-2015)
EUR/USD
• EUR sold far & wide as carry trade funders pile on & Fed debates hike timing
• Dudley kept June in the mix, may see strong cyclical rebound in EZ M-T
• Powell & FOMC Minutes also tending to suggest rate hikes inevitable
• EUR/USD below up TL fm Mar low; range traders eye Mar 31 1.0713 low
• Break/close below would confirm USD Index’s B/O past its dn TL today
• 2-yr DEM-USD spreads @ Mar 31 low.
USD/JPY
• USD/JPY held key Tenkan & hrly Cloud @119.58 & spiked post Fed Minutes
• Tsy curve flattened after the Minutes, lifting USD, but since receded
• Japanese foreign investment demand to support as Fed hike debate persists
• EUR/JPY dragged dn by EUR sales; Apr 1 low attracts; Kijun caps
• AUD/JPY rallies to Cloud base before backing off
• Flows, Econ report, Mach Tools Thu.