Euro eyes $1.14
The euro is creeping higher as the dollar continues to slide, and even though there has been little in the way of economic announcements, EUR/USD is reverting to the upward trend it has been in since the Federal Reserve meeting in mid-March. As I previously stated, Greece is still bubbling away in the background and political pressure will come to a head near the end of the month when a series of repayments are due. In the meantime, traders are more interested in the US, and when interest rates will rise.
The commentary at next week’s Fed meeting will be crucial, and traders are split over as to when the US central bank will make the first rate hike. The latest non-farm payrolls and US JOLTS numbers have been impressive but the concern is that US citizens are saving and not spending, and that is why some dealers don’t foresee a rate rise this year.
The target to the upside is $1.14 and if it is cleared the May high of $1.1467 will be in sight. Any moves lower in EUR/USD will find support in the $1.12 region.