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Forex: U.S. Euro Summary

Posted by Joseph Trevisani on Sep 26, 2013 5:26:00 PM

The euro commenced U.S. trading (8:00 am) at 1.3498 after traversing a 1.3525 to 1.3486 range in Europe which easily took in the Asian market. Good selling from corporates blocked the upside above 1.3525 and the euro moved lowed in spurts as traders cut long positions acquired in Asia's limited range.

U.S. data at 8:30 was mixed, jobless claims were better than predicted (305,000 vs. 325,000), though with questions about accuracy, and GDP a shade weaker than forecast (2.5% vs. 2.6%)  gave the dollar a boost to 1.348, but the small reaction to the data was followed by a return to 1.3500 and 1.3506. Weaker pending home sales at 10:00 am (-1.6% vs. -1.0%) provided brief volatility with the price first touching 1.3511 and 10 minutes later 1.3482.

Comments from Federal Reserve Governor Jeremy Stein that the Fed should be more predictable in its public discussion of ending quantitative easing and that the decision not to reduce the asset purchase program had been a close call, kept the euro defensive eventually reaching 1.3472 soon after the London close.  That exhausted an admittedly lethargic market and the euro drifted back to 1.3490 at the close.


Chart: Bloomberg

ScreenHunter 1835 Sep. 26 18.41



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