With yet another strong daily gain against the US dollar (USD), the euro (EUR) is closing out the week. According to Shaun Osborne, Chief FX Strategist at Scotiabank, this is the best weekly performance for the EUR since 2009, as reported by Bloomberg.
The EUR rally still has room to grow.
"A little upward revision of Eurozone growth in Q4 (0.2% Q/Q, from 0.1%) and a further, minor narrowing of EZ/US spreads (to -170bps) have supported late-week advances. After yesterday's decrease, ECB policy hawks are warning that the rate outlook is uncertain. Germany's AAA rating was "not necessarily" in danger due to fiscal measures, according to S&P.
EUR advances may reach 1.0950/00, according to strong, consistent increases through 1.0800/05 (1.0964 is the 76.4% retracement resistance obtained from the EUR 1.12/1.01 dip). Bullish short- and medium-term trend momentum suggests that the EUR advance still has potential to grow and is supportive of additional gains at this time. Support is at 1.0800/10 and, crucially, at 1.0765 in the near future.
The EUR rally still has room to grow.
"A little upward revision of Eurozone growth in Q4 (0.2% Q/Q, from 0.1%) and a further, minor narrowing of EZ/US spreads (to -170bps) have supported late-week advances. After yesterday's decrease, ECB policy hawks are warning that the rate outlook is uncertain. Germany's AAA rating was "not necessarily" in danger due to fiscal measures, according to S&P.
EUR advances may reach 1.0950/00, according to strong, consistent increases through 1.0800/05 (1.0964 is the 76.4% retracement resistance obtained from the EUR 1.12/1.01 dip). Bullish short- and medium-term trend momentum suggests that the EUR advance still has potential to grow and is supportive of additional gains at this time. Support is at 1.0800/10 and, crucially, at 1.0765 in the near future.
