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NY Open: EUR Keeps Hanging On
08.05.2012
There is very little to report from the European session. EURUSD drifted down from around 1.3060 in Asia and sentiment remains poor for all the obvious reasons – see the Cheatsheet we posted earlier for a summary by clicking here.
And yet the single currency keeps hanging on. At the time of writing, it looks heavy just above 1.3000 but it doesn’t look like it is any real rush to move lower. Will it prove a case of what doesn’t go down, must go up? Perhaps, but only time will tell. Volumes are quite low and our flow shows a small skew in favor of buying.
AUDUSD has been a little livelier. It led the move in Asia after the Australian March trade deficit numbers came in at AUD1.59Bn in March versus AUD754mn in February.
This saw it move from around 1.0220 to 1.0170 and the pressure has remained during the European session. But this has not been a simple move to read and the market remains choppy. As our spot trader in London says, the price action over the past 36 hours has been nothing short of brutal in AUD as the market was once again enticed into short-term positions that failed to survive yesterday.
This is an excerpt of CitiFX Research & Commentary as received in full by CitiFX Pro clients. It is provided to you only as an example of information made available to CitiFX Pro clients, and it does not contain the full analysis, conclusions, or other information found in original document.