Euro crosses are on a firm footing this Thursday, respecting the well defined bullish tendencies in July, only observing some minor retracements on a timid flight to safety. Nonetheless, investors are slowly returning to brave wider corners of the market.
EUR/USD trades at 1.2790, a 0.35% rise from previous close. The pair had previously reached a new 2-month high at 1.2803. EUR/CHF walks unchanged through 1.3400 area, while EUR/JPY recovered 112.50 after falling to 111.80 earlier on. Meanwhile, EUR/AUD rose sharply passed 1.4500 from an opening at 1.4394 level.
“Part of the reason for the restrained market activity may be the EU Bank Stress test results expected to be released next Friday. While some say the release will be good for risk-correlated trades due to the high level of transparency – we believe this may only be the case if the anticipated cost of recapitalizing about-to-fail banks is manageable” said Peter Rosenstreich at ACM.
He added: “Good indicators for the Euro were recent bond auctions in Germany, Italy, Greece and Portugal – all of which went off without a hitch, even with Moody’s recent double-downgrade of Portugal. Interestingly, today CNBC speculates that eleven banks will fail the EU stress”.
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