Forex Analysis

EUR/USD Analysis

The pair sank below a couple of barrier levels last night in the US before setting a new low for 2014, at $1.3313.

The pair opened at Y102.91, just off last night’s Y102.93 US session high, while euro-yen started at Y137.09 this morning.

The RBA’s half-yearly testimony had a somewhat more positive tone without going overboard on growth specifics

The Bundesbank has revised its Euro zone growth forecast lower and the drag from Russian sanctions lives on.

With a quasi-downside breakout on the chars overnight and a downward revision in Euro zone growth forecasts from the Bundesbank,

The chart pattern in the Yen favors the bear camp and a decline in global geopolitical anxiety facilitates further downside in the Yen ahead.

The Dollar is back to winning by default as UK inflation readings overnight were disappointing,

The Canadian ran out of buying fuel as it approached the 92.00 level but

The Pound has forged a fresh downside breakout overnight in the face of softer than expected UK inflation readings.

We wrote last week in the FX Blog that sustained appreciation until recently and

The situation in Ukraine continues to be the main focus of the markets.

The pairopened at $0.9340 this morning, after a $0.9315 to $0.9335 range overnight in New York.