EUR Trading Outlook (14-04-2015)
EUR/USD
• Early NY adds to losses from Europe’s morning on RM & leveraged sales
• 1.0521 low hit, bounce ensues on talk of 1.05 barrier & softening USD
• 1.0570/75 res breaks as USD collapses on JPY strength
• HF short covering accelerates lift & 1.0610/20 res zone tested
• EUR/JPY stays heavy on sour risk, weighs EUR/USD
• EUR/USD sub-1.0560 before bouncing towards 1.0575 late in day.
USD/JPY
• USD/JPY o/n high at 120.84 faded by Ldn after Tsy ylds slipped
• Sub 120 stops run on Hamada’s 105 fair value call – bbg
• Bids above 119.52 Cloud top held for snapback 120.42
• USD-JPY 2-yr yld spreads slipped in US, as did risk, helping yen
• US Retail Sales a key Fed policy input on Tuesday
• EUR/JPY broke Mar low on Hamada & Grexit risk, but snapped back