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EUR/USD – Little Movement Ahead of Eurozone Talks Over Greece

The euro is listless on Wednesday, as EUR/USD continues to have a very quiet week. In the European session, EUR/USD is trading in the low-1.13 range. On the release front, today’s highlight is the meeting of Eurozone finance ministers in Brussels. There are no major releases out of the Eurozone or US on Wednesday.

The markets remain focused on Greece, as the bailout crisis continues. After the new Greek government said it would not renew the EUR 240 billion bailout under the current terms, the ECB announced that it will no longer accept Greek government bonds as collateral for ECB loans as of February 11. Greece is proposing a new 10-step deal that removes the harsh austerity steps, which Greece has called “toxic”, required under the bailout. However, Germany and Greece’s international creditors do not want to rewrite the bailout agreement. On Wednesday, EU finance ministers are meeting in Brussels, with the Greek crisis on top of the agenda. If there are any major announcements out of Brussels on Wednesday, we could see some movement from EUR/USD.

US employment numbers continue to impress, as JOLTS Jobs Openings climbed to 5.05 million, matching expectations. This was the indicator’s highest level since 2001, and points to more available jobs due to an increase in demand for goods and services. The strong reading follows a solid US Nonfarm Payrolls report for January, which was released on Friday. The key employment indicator improved to 257 thousand in January, up from 252 thousand a month earlier. This easily beat the estimate of 236 thousand. The Federal Reserve has been clear that the employment numbers will have to be strong before a rate hike kicks in, so these strong employment releases reinforce expectations for an interest rate in mid-2015, which would be a major boost for the US dollar.

EUR/USD for Wednesday, February 11, 2015

EUR/USD February 11 at 9:55 GMT

EUR/USD 1.1322 H: 1.1345 L: 1.1306

 

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1066 1.1154 1.1231 1.1340 1.1426 1.1525

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

EUR/USD ratio is almost unchanged on Wednesday. This is consistent with the lack of movement we are seeing from the pair. The ratio has a majority of short positions, indicative of trader bias towards the euro moving lower.

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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