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17 Mar 2016
Another bad day for the greenback - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that it was another bad day for dollar's bulls, as the negative momentum of the American currency extended all through the board, sending most of its counterparts to fresh multi-month highs.
Key Quotes:
"The EUR/USD pair extended its gains up to 1.1341, its highest in over a month, helped by some positive local data, as the EU inflation surged 0.2% in February, beating estimates and back in positive ground, although the year-on-year figure showed a 0.2% slide as expected. Also in Europe, the international trade in goods posted a surplus of €6.2B, as imports fell by 1% and exports decreased 2% during the same month.
In the US, the current account deficit narrowed from an upwardly-revised reading in Q3, down to $125.3B, while weekly unemployment claims resulted at 265K for the week ending March 11th, beating expectations of 268K. The Philadelphia FED Manufacturing survey was also pretty encouraging, up to 12.4 from previous -2.8. Nevertheless, the extremely cautious tone of Yellen last Wednesday maintained the dollar in sell-off mode for a second day in-a-row.
The EUR/USD pair fell down to 1.1277 during the American afternoon, but quickly regained the 1.1300 level, indicating investors are willing to buy on dips. The technical picture continues favoring the upside, as in the 4 hours chart, the technical indicators keep heading higher, despite being in overbought territory. Friday may bring some profit taking, but with the Central Banks done for this month, the pullback will likely be limited. Should the rally extend beyond 1.1375, February high, the pair has scope to test the 1.1460 region, the level that capped the upside for most of the last 2015."
Key Quotes:
"The EUR/USD pair extended its gains up to 1.1341, its highest in over a month, helped by some positive local data, as the EU inflation surged 0.2% in February, beating estimates and back in positive ground, although the year-on-year figure showed a 0.2% slide as expected. Also in Europe, the international trade in goods posted a surplus of €6.2B, as imports fell by 1% and exports decreased 2% during the same month.
In the US, the current account deficit narrowed from an upwardly-revised reading in Q3, down to $125.3B, while weekly unemployment claims resulted at 265K for the week ending March 11th, beating expectations of 268K. The Philadelphia FED Manufacturing survey was also pretty encouraging, up to 12.4 from previous -2.8. Nevertheless, the extremely cautious tone of Yellen last Wednesday maintained the dollar in sell-off mode for a second day in-a-row.
The EUR/USD pair fell down to 1.1277 during the American afternoon, but quickly regained the 1.1300 level, indicating investors are willing to buy on dips. The technical picture continues favoring the upside, as in the 4 hours chart, the technical indicators keep heading higher, despite being in overbought territory. Friday may bring some profit taking, but with the Central Banks done for this month, the pullback will likely be limited. Should the rally extend beyond 1.1375, February high, the pair has scope to test the 1.1460 region, the level that capped the upside for most of the last 2015."