EUR/USD holds a tight range in the morning session

Ahead of a raft of US data releases this afternoon, EUR/USD has managed to remain relatively calm.

The last week of trading has seen this currency cross drop 400 pips as confusion over US economic data caused many to ponder whether good news is in fact good or bad? The answer seems to depend on which side of the Atlantic you sit. Good US data could give the Fed more reason to step up plans to start reducing the monthly $85 billion QE policy, and this is being interpreted as bad news for European equity markets. However, good US economic data will ultimately be good for European exports, as the US remains the EU’s biggest consumer. Bubbling away in the background is the generic movement of European sovereign debt yields, which are once again heading higher. Portugal and Slovenia are the two countries most likely to test the dangerous 7% levels.

With so many fundamental issues swirling around, technical analysis could be interpreted as a little less conclusive. Nevertheless, EUR/USD has just broken through both the 200- and 100-day moving averages, and once again has been pulled back to the almost magnetic 1.3000 level. Well, that’s clear…

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CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.