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2 Aug 2013
EUR/USD bounces off 1.3200, eyes on NFP
FXstreet.com (Edinburgh) -After an ephemeral touch of 1.3200 the figure, the EUR/USD is now recovering some pips around 1.3210, as the US labour market data loom.
EUR/USD cautiousness prevails
Investors remain wary about assuming positions in the EUR ahead of today’s NFP number, as a solid read would be supportive of an extension of the recent USD rally, increasing the selling pressure around the bloc currency. In light of the upcoming US labour market data, analysts at BBH Global Currency Strategy Team commented, “it still seems reasonable that the Fed may lower its threshold for higher rates from a 6.5% unemployment rate to 6% when it decides to taper in order to drive home the message that tapering is not tightening. It would also be consistent with the transition from balance sheet driven monetary policy to forward guidance”.
EUR/USD relevant levels
As of writing the pair is flat at 1.3207 facing the next hurdle at 1.3311 (high Aug.1) ahead of 1.3345 (high Jul.31) and then 1.3417 (high Jun.19). On the downside, a break below 1.3192 (low Aug.1) would target 1.3166 (low Jul.25) en route to 1.3164 (low Jul.23).
EUR/USD cautiousness prevails
Investors remain wary about assuming positions in the EUR ahead of today’s NFP number, as a solid read would be supportive of an extension of the recent USD rally, increasing the selling pressure around the bloc currency. In light of the upcoming US labour market data, analysts at BBH Global Currency Strategy Team commented, “it still seems reasonable that the Fed may lower its threshold for higher rates from a 6.5% unemployment rate to 6% when it decides to taper in order to drive home the message that tapering is not tightening. It would also be consistent with the transition from balance sheet driven monetary policy to forward guidance”.
EUR/USD relevant levels
As of writing the pair is flat at 1.3207 facing the next hurdle at 1.3311 (high Aug.1) ahead of 1.3345 (high Jul.31) and then 1.3417 (high Jun.19). On the downside, a break below 1.3192 (low Aug.1) would target 1.3166 (low Jul.25) en route to 1.3164 (low Jul.23).