EUR Trading Outlook (01-05-2015)

EUR/USD
• O/N rally stalls ahead of 1.1250/80 res, slips toward 1.1190 into NY open
• Above f/c US ECI & below f/c claims lift USD, EUR/USD dips ~1.1115
• Dip bought as German bond yields rally outperforms US yield lift
• USD & US yield gains erode in afternoon, EUR/USD ~1.1220 late in day
• Asia & European session likely quiet with Labor day holiday
• April Markit & ISM Mfg PMIs risks in NY, if weak pair likely rises further

USD/JPY
• O/N post BOJ dip to 118.50 left o/s USD/JPY primed for rebound on US data
• Tsy ylds drove it toward Cloud top, Apr 23 hi & dn TL fm Mar at 120.05/10/20
• 119.90 capped as Tsy ylds retreated amid stocks fall (N225 futs -2.7% last)
• Stops above 120.10-20, but need US data strong enough to keep stocks up
• EUR/JPY well above daily Cloud, light rsst by 135; 200-DMA 137.41
• HY/Cmdty/EM crosses pruned.

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