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EUR/USD – Steady As Euro Remains Above 1.37

EUR/USD has started the new trading week quietly, as the pair trades slightly above the 1.37 line. It’s a quiet day on the release front, with just three events on the schedule. German Industrial Production weakened in March but still beat the estimate. Eurozone Sentix Investor Confidence matched expectations. In the US, the day’s sole release is Consumer Credit.

On Friday, all eyes were on Non-Farm Payrolls, one of the most important economic indicators. The indicator rose nicely last in March, climbing to 192 thousand, compared to 175 thousand a month earlier. However, the markets were looking for more, with the estimate standing at 199 thousand. The Unemployment Rate also fell short of the estimate. Although these numbers were not as strong as hoped, the Federal Reserve is expected to continue trimming QE when it meets at the end of April.

German data continues to beat expectations, as the Eurozone’s largest economy continues to post respectable numbers. Industrial Production dropped to 0.4%, down from 0.8% a month earlier, but this edged above the estimate of 0.3%. Last week, German Retail Sales, Unemployment Change and Factory Orders all beat their estimates.

The Eurozone continues to struggle with weak inflation and a high euro, so there has been pressure on the ECB for some time now to take action. However, on Thursday the ECB opted to stand pat. The central bank kept interest rates at the ultra-low level of 0.25% and ECB chief Mario Draghi said that monetary easing remains a possibility, but clearly the ECB is in no rush to make any moves.

 

EUR/USD for Monday, April 7, 2014

Forex Rate Graph 21/1/13

EUR/USD April 7 at 9:50 GMT

EUR/USD 1.3719 H: 1.3720 L: 1.3697

EUR/USD Technical

S3 S2 S1 R1 R2 R3
1.3410 1.3585 1.3649 1.3786 1.3893 1.4000

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

EUR/USD ratio has posted gains in long positions on Monday, continuing the direction seen late last week. This is consistent with the pair’s current movement, as the euro has edged upwards. Short positions retain a strong majority, indicative of trader bias towards the dollar posting gains at the expense of the euro.

EUR/USD is not showing much movement in the European session, as the pair trades slightly above the 1.37 line. With no major US releases during the day, it could be an uneventful start to the week for the pair.

 

EUR/USD Fundamentals

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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