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10 Apr 2013
Forex: EUR/USD keeps 1.3100 after Italian data
FXstreet.com (Barcelona) - The euro remained almost indifferent after the Italian industrial production contracted 3.8% on a year to February bettering the median albeit below January’s print.
According to the Strategist Derek Halpenny at BTMU, spreads in peripheral bond markets continue to tighten after the BoJ announcement last week, helping the cross recover the 1.3000 level. “Still, the fundamentals in the euro-zone remain dire with fiscal or political problems in Portugal, France and Italy. The ECB is not far from signalling a rate cut and in these circumstances the upside for EUR/USD remains quite limited. Our current three-month EUR/USD forecast remains 1.3000”, concluded the expert.
As of writing, EUR/USD is up 0.195 at 1.3108 and a break above 1.3111 (38.2% of Feb-Apr slide) would open the door to 1.3135 (high Mar.80.
On the other hand, support levels are located at 1.3006 (low Apr.9) would aim for 1.2963 (low Apr.8) and finally 1.2901 (MA200d).
According to the Strategist Derek Halpenny at BTMU, spreads in peripheral bond markets continue to tighten after the BoJ announcement last week, helping the cross recover the 1.3000 level. “Still, the fundamentals in the euro-zone remain dire with fiscal or political problems in Portugal, France and Italy. The ECB is not far from signalling a rate cut and in these circumstances the upside for EUR/USD remains quite limited. Our current three-month EUR/USD forecast remains 1.3000”, concluded the expert.
As of writing, EUR/USD is up 0.195 at 1.3108 and a break above 1.3111 (38.2% of Feb-Apr slide) would open the door to 1.3135 (high Mar.80.
On the other hand, support levels are located at 1.3006 (low Apr.9) would aim for 1.2963 (low Apr.8) and finally 1.2901 (MA200d).