EUR/USD
The euro and commodity currencies got off to a steadier start on Thursday following a choppy session overnight that saw Wall Street end flat after a two-day closure due to Hurricane Sandy. Trading was expected to remain subdued in early Asian dealings as investors wait for the latest reading on China's manufacturing data due around 0100 GMT. Any confirmation that China's slowdown has stabilized could help lift risk sentiment, underpinning the euro and commodity currencies such as the Australian dollar in particular. "Certainly the signs are there that China's economy may be stabilizing and that's positive. But a lot of that kind of thinking is already priced in. There are still question marks over the leadership transition in China," said Greg Gibbs, senior FX strategist at RBS in Singapore. The euro bought $1.2960, little changed from its New York close, having again found the going tough above $1.3000. It remained well within a $1.2800/1.3200 range seen since early September. The pullback in the euro from levels above $1.3000 saw the dollar index climb off a one-week low of 79.270 to 79.933. Ongoing uncertainty about if and when Spain will seek a bailout and trigger the European Central Bank's bond-buying program and whether Greece will secure more emergency loans continued to dog the single currency. Euro zone finance ministers made progress on Wednesday on ways to keep Greece afloat, but Athens still needs to push through spending cuts and tax measures worth 13.5 billion ($17.5 billion) as well as a raft of economic reforms to receive fresh bailout money.
The euro and commodity currencies got off to a steadier start on Thursday following a choppy session overnight that saw Wall Street end flat after a two-day closure due to Hurricane Sandy. Trading was expected to remain subdued in early Asian dealings as investors wait for the latest reading on China's manufacturing data due around 0100 GMT. Any confirmation that China's slowdown has stabilized could help lift risk sentiment, underpinning the euro and commodity currencies such as the Australian dollar in particular. "Certainly the signs are there that China's economy may be stabilizing and that's positive. But a lot of that kind of thinking is already priced in. There are still question marks over the leadership transition in China," said Greg Gibbs, senior FX strategist at RBS in Singapore. The euro bought $1.2960, little changed from its New York close, having again found the going tough above $1.3000. It remained well within a $1.2800/1.3200 range seen since early September. The pullback in the euro from levels above $1.3000 saw the dollar index climb off a one-week low of 79.270 to 79.933. Ongoing uncertainty about if and when Spain will seek a bailout and trigger the European Central Bank's bond-buying program and whether Greece will secure more emergency loans continued to dog the single currency. Euro zone finance ministers made progress on Wednesday on ways to keep Greece afloat, but Athens still needs to push through spending cuts and tax measures worth 13.5 billion ($17.5 billion) as well as a raft of economic reforms to receive fresh bailout money.
Support
|
Resistance
|
|
EUR/USD
|
1.29290
|
1.30030
|
1.29005
|
1.30485
|
|
1.28550
|
1.30770
|
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