Forex: EUR/USD still finds opposition around 1.3370

The EUR/USD spiked to 1.3373 high on the release of very appealing German and Eurozone economic sentiment figures by the ZEW February survey, at 48.2 and 42.4, respectively. After trading below the opening price throughout the rest of the European session, the market strengthened back to its highs on US money flows and just ahead of US NAHB housing market index.

The Housing Market Index by NAHB was expected to rise from 47 to 48 in February, but actual data points to a drop to 46, disappointing investors. The pair could only rise to as high as 1.3372 and is currently stuck at 1.3360/70.

“The EUR/USD currency pair continues consolidating inside a narrow trading range near the level of 1.3330”, wrote Roboforex.com analyst Igor Sayadov, expecting the pair to extend the downside towards 1.3240. “After reaching this target, the pair may make a reverse to start a new ascending movement”; he added.

Feb 19, 2013

Fundamental Afternoon Wrap: EUR capital flows climb & BoJ proposals loom

On a quiet day in a quiet week in FX land, we have taken a look across this afternoons institutional research and not a distinct theme; namely that there is no theme. Analysts look to be using the lull to comment on particularities in the market or expand on political rhetoric from this morning.

Forex Flash: Draghi reiterates proper leveraging – Deutsche Bank

The talk on the valuation of the euro continued yesterday with Draghi telling lawmakers at the European parliament that the ECB will monitor the euro through its impact on price stability, a reiteration of his previous stance on the topic. The ECB's Nowotny sought to downplay talk of the euro saying that the "exchange rate is moving in a range we have had before. We have had no special developments. There is a euro appreciation against the yen but not to a dramatic extent".