{"id":3170,"date":"2009-07-31T12:27:53","date_gmt":"2009-07-31T17:27:53","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3170"},"modified":"2009-07-31T12:27:53","modified_gmt":"2009-07-31T17:27:53","slug":"eurusd-climbs-to-safety-after-positive-unemployment-rate-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/31\/eurusd-climbs-to-safety-after-positive-unemployment-rate-data\/","title":{"rendered":"EUR\/USD Climbs to Safety after Positive Unemployment Rate Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is rising quickly after basing yesterday in reaction to the surprise decline in Germany\u2019s unemployment change number.\u00a0 Today\u2019s EU unemployment rate data confirmed the improving employment market in Europe.\u00a0 The EUR\/USD has popped above our 1st and 2nd tier uptrend and 2nd tier downtrend lines, separating itself from the highly psychological 1.40 level.\u00a0 However, optimism is a bit mixed since the EU CPI flash estimate came in two basis points below analyst expectations.\u00a0 The EU continues to face deflationary pressures despite declining unemployment and rising consumer confidence.\u00a0 Therefore, the ECB may need to lower rates again or increase the funding to its alternative liquidity measures since the injection of liquidity doesn\u2019t seem to be having a potent enough impact on prices.\u00a0 The possibility of an increase in liquidity is creating a drag on the Euro, noted in the subpar performance of the EUR\/GBP.\u00a0 Regardless, the improvement in unemployment and consumer in confidence is key since prices and industrial production should follow later.<\/p>\n

Meanwhile, the spread between German and Greek bonds continues to narrow, showing investors are willing to take more risk with their EU investments.\u00a0 Additionally, we\u2019ve seen mixed yet positive data from the U.S. recently, giving the EUR\/USD more motivation to recovery strongly Wednesday\u2019s pullback.\u00a0 On a cautionary note, Deutsche Bank\u2019s CEO, Josef Ackermann, warned that individual and small business delinquencies may cause another wave of financial turmoil.\u00a0 However, investors are focusing on the immediate-term once again rather than dire remarks regarding the medium-term.\u00a0 Global economic fundamentals are improving and immediate-term, concrete data is telling a positive story.<\/p>\n

The EUR\/USD\u2019s defense of 1.40 has been impressive, yet expected.\u00a0 The EUR\/USD is logging some encouraging volume on the buy-side while the currency pair\u2019s correlations make positive moves.\u00a0 Despite the recovery in the EUR\/USD, the currency pair still has to deal with our 3rd tier downtrend line and previous July highs.\u00a0 July highs could prove to be problematic since the contraction in CPI and PPI are capping gains in the Euro.\u00a0 Additionally, the S&P futures are trading just below their highly psychological 1000 mark.\u00a0 The EUR\/USD may need the S&P to tackle 1000 before the currency pair can take down its own July highs.\u00a0 Since we believe 1000 should prove to be a worthy obstacle, the EUR\/USD could continue to slope downwards in a consolidative fashion from daily highs for the near-term.\u00a0 This analysis seems realistic considering investors may hesitate ahead of the ECB meeting on Wednesday.\u00a0 The ECB has issued surprise monetary shocks in the past, and an injection of liquidity next week isn\u2019t entirely out of the question considering this week\u2019s pricing data.<\/p>\n

Present Price: 1.4195<\/p>\n

Resistances: 1.4196, 1.4214, 1.4225, 1.4242, 1.4266<\/p>\n

Supports: 1.4176, 1.4165, 1.4154, 1.4136, 1.4117<\/p>\n

Psychological: 1.40<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/a>.<\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The EUR\/USD is rising quickly after basing yesterday in reaction to the surprise decline in Germany\u2019s unemployment change number.\u00a0 Today\u2019s EU unemployment rate data confirmed the improving employment market in Europe.\u00a0 The EUR\/USD has popped above our 1st and 2nd tier uptrend and 2nd tier downtrend lines, separating itself from the … <\/p>\n

Continue reading “EUR\/USD Climbs to Safety after Positive Unemployment Rate Data”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3170","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=3170"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3170\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}