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1 Mar 2014
Session Recap: Anything but Ukraine; Dollar on the weak
FXStreet (San Francisco) - The US dollar was the biggest loser in the session as investors were reluctant to take positions on the Greenback ahead of a crucial week ahead. However news coming from Ukraine said that 2,000 Russian soldiers landed in Crimea. Market was dumbfounded.
Late risk aversion didn't benefit the USD today as earlier in the day the US GDP posted a downward revision to 2.4% in the Q4. Expectations were about 2.5%. Stocks rallied to record highs in the S&P however major indexes faded gains with the Ukraine's news and Wall Street closed mixed the day but with solid gains in the week and the month.
The EUR/USD advanced for fourth week in a row to close above 1.3800. In the month, the pair performed a spectacular come-back from 1.3475 priced earlier in the month to reach Friday's high at 1.3825, 2014 high. So what’s next for the EUR/USD? "Mostly it will depend on the main barometers of each economy, the ECB policy meeting and the US employment figures, next Thursday and Friday respectively," comments FXStreet chief analyst Valeria Bednarik.
"The most likely scenario there, is an on hold stance and a mild hawkish speech; in the US, employment tumbled the last months, so my take is that will be the key for March trends, as another bad number will probably put the greenback under pressure, and boost the EUR/USD towards December high around 1.3900," Bednarik adds.
According to the Forecast Currencies Poll, the EUR/USD bullish momentum is expected to extend next week: Our #FXpoll shows the pair may extend beyond 1.3900, albeit bears will take over in a 1 month view. However, the Dollar may lose ground in the short term, but market still believes in taper as we may assume from the Forecast Poll results.
Main headlines in the American session:
Canadian GDP falls 0.5% in December. rises 2.9% in Q4
US: Q4 GDP growth revised down to 2.4% versus 3.2%
US: Chicago PMI slightly up to 59.8 in February
US: Reuters/Michigan Consumer Sentiment Index rises to 81.6 in February
US: Annual Pending Home Sales fall 9.0% in January
White House: Russian intervention in Ukraine would be a grave mistake...
Ukraine acting president accuses Russia of aggression
Things are heating up in Crimea
US stocks closed mixed the day, but post solid gains in February
Late risk aversion didn't benefit the USD today as earlier in the day the US GDP posted a downward revision to 2.4% in the Q4. Expectations were about 2.5%. Stocks rallied to record highs in the S&P however major indexes faded gains with the Ukraine's news and Wall Street closed mixed the day but with solid gains in the week and the month.
The EUR/USD advanced for fourth week in a row to close above 1.3800. In the month, the pair performed a spectacular come-back from 1.3475 priced earlier in the month to reach Friday's high at 1.3825, 2014 high. So what’s next for the EUR/USD? "Mostly it will depend on the main barometers of each economy, the ECB policy meeting and the US employment figures, next Thursday and Friday respectively," comments FXStreet chief analyst Valeria Bednarik.
"The most likely scenario there, is an on hold stance and a mild hawkish speech; in the US, employment tumbled the last months, so my take is that will be the key for March trends, as another bad number will probably put the greenback under pressure, and boost the EUR/USD towards December high around 1.3900," Bednarik adds.
According to the Forecast Currencies Poll, the EUR/USD bullish momentum is expected to extend next week: Our #FXpoll shows the pair may extend beyond 1.3900, albeit bears will take over in a 1 month view. However, the Dollar may lose ground in the short term, but market still believes in taper as we may assume from the Forecast Poll results.
Main headlines in the American session:
Canadian GDP falls 0.5% in December. rises 2.9% in Q4
US: Q4 GDP growth revised down to 2.4% versus 3.2%
US: Chicago PMI slightly up to 59.8 in February
US: Reuters/Michigan Consumer Sentiment Index rises to 81.6 in February
US: Annual Pending Home Sales fall 9.0% in January
White House: Russian intervention in Ukraine would be a grave mistake...
Ukraine acting president accuses Russia of aggression
Things are heating up in Crimea
US stocks closed mixed the day, but post solid gains in February