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22 May 2015
EUR/USD re-focused on 1.1000
FXStreet (Edinburgh) - The shared currency accelerated its correction lower vs. the greenback towards the end of the week, prompting EUR/USD to re-visit multi-week lows around the psychological 1.1000 neighbourhood.
With volatility in the German Bunds returning to usual levels and the recent sell-off running out of steam, the pair saw a significant support for its recent upside removed.
Despite spot has managed to revert a negative first half of the week (dropping from the mid-1.1400s post-FOMC minutes), April’s inflation figures gauged by the CPI in the US economy surprised markets to the upside, renewing the buying interest around the dollar and thus relegating spot to trade near the 1.1000 handle.
Amongst the salient points of her speech on ‘US Economic Outlook’ today, Chairwoman J.Yellen reiterated that the weakness seen during the first quarter was transitory, expecting the economic growth to resume its pace towards Q2. On the timing of the rates lift-off, Yellen expects a hike at some point this year.
Regarding Greece, there was no major news from the EU Leaders Summit in Riga, in line with previous expectations. While the country is running out of time to clinch a deal with its EU creditors, speculations and rumours regarding the likeliness of a default, a parallel currency and the like continue to build up amongst traders, as significant repayments are looming and the lack of progress in the negotiations is really alarming.
With volatility in the German Bunds returning to usual levels and the recent sell-off running out of steam, the pair saw a significant support for its recent upside removed.
Despite spot has managed to revert a negative first half of the week (dropping from the mid-1.1400s post-FOMC minutes), April’s inflation figures gauged by the CPI in the US economy surprised markets to the upside, renewing the buying interest around the dollar and thus relegating spot to trade near the 1.1000 handle.
Amongst the salient points of her speech on ‘US Economic Outlook’ today, Chairwoman J.Yellen reiterated that the weakness seen during the first quarter was transitory, expecting the economic growth to resume its pace towards Q2. On the timing of the rates lift-off, Yellen expects a hike at some point this year.
Regarding Greece, there was no major news from the EU Leaders Summit in Riga, in line with previous expectations. While the country is running out of time to clinch a deal with its EU creditors, speculations and rumours regarding the likeliness of a default, a parallel currency and the like continue to build up amongst traders, as significant repayments are looming and the lack of progress in the negotiations is really alarming.