This Could Add Fuel To The Euro
Macro
Notes:
Comments
overnight by ECB officials/economists continue to be hawkish, but
stop short of signaling rate hikes. Nonetheless,
with recent dollar weakness and the EUR touching the upper ranges of the recent
trading range, these comments may add fuel to upside moves.Â
“The
global recovery is confirmed after some slowing down in the second
quarter,”
Trichet said at a regular meeting of central bankers from the G10 industrialised
nations and major emerging markets.
“Most indicators suggest some strengthening in the third quarter,” he
added. “We are confident that the inflationary expectations at
a global level are on track, namely that we maintain price stability,”
Trichet said. “Vigilance remains of the essence.”
Technical
Notes:
EUR/USD:
short-term models show minor pull-back into wave support at 1.2220 level.Â
With sizable offers at 1.2300 from Friday, this will be the key level to
overcome in order to extend gains.
USD/CAD:Â
extreme oversold condition and weekly charts combined with less than
expected job creation last Friday leaves the bulls in command for the time
being. 1.2960 and 1.2990 are
short-term targets with 1.2890 providing support.Â
Much of the demand in USD/CAD can be attributed to the CAD crosses (EUR/CAD).Â
My FX Service is long USD/CAD this morning from 1.2940.
As always, feel free to send me your comments and
questions.