Euro remains firm in APAC trade

@12:44 PM Sydney

Traders are focusing on the euro today after the currency’s spectacular rally on Friday following European Central Bank commentary last week and some hope that Germany will soon form a government. .

The euro held around the $US1.22 mark on Monday after the currency had what Stephen Innes, head of APAC trading at OANDA called a “remarkable” day on Friday.

He said that the European currency looks poised to make further gains:

“It’s conceivable the euro will trade above $1.30 this year, but interim targets towards $1.24-$1.25 near-term look like a logical take profit zone and probably the next congestion point.

“In the meantime, the hawkish ECB minutes and diminishing political risk should continue to drive sentiment. Politics will remain a key driver of opinion with both CDU and SPD converging to a Grand Coalition.

“Of interest this week will be ECB speakers Weidmann and Coeure whose comments will be carefully watched after the release of the hawkish ECB minutes. Not a great time to be short euro.”

The Sydney Morning Herald

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.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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