‘The euro area’s travails are largely due to lack of effective convergence, both before the financial crisis and since then.’ – Benoit Coeure, ECB (based on Bloomberg)
Pair’s Outlook
During the early hours of Monday’s trading session the common European currency traded at the 1.06 level against the US Dollar. The rate was looking for support, as profit taking was taking place after the major jump, which occurred during Friday’s trading session. During Friday’s trading session the currency exchange rate jumped from 1.0504 to end the day at 1.0619. The reason for the jump was fundamental, as speeches from the FOMC members dictated the strength of the US Dollar. It is likely that by the end of the day the currency exchange rate will move to the 1.0582 level, where the weekly PP is located at.
Traders’ Sentiment
SWFX traders are almost neutral on the pair, as 51% of open positions are long. Meanwhile, 57% of trader set up orders are set to sell.
