Back
17 Mar 2014
Session recap: Upon awakening, the dinosaur was still there; EUR/USD heading to 1.4000
FXStreet (San Francisco) - The news of the day was the risk appetite following the Crimea vote and posterior Putin's decision to sign order recognizing Crimea as a sovereign state. In currency market: the EUR/USD and USD/JPY advanced while GBP/USD traded sideways; in related: Gold and Oil decline while US stocks rallied.
The serious reactions promised by the west were really soft sanctions limited to only 21 individuals. It was also interesting when Barack Obama said US hasn't decided yet in between "to escalate or to de-escalate the situation." However, investors seem to have digested well the situation with riskier assets advancing in the day.
The EUR/USD advanced for second day with the pair reaching its highest close since October 2011 at 1.3920. The pair seems now condemned to test the 1.4000 key price in special after past Friday Moody's upgrade to stable in the EU outlook. The pair looks neutral in the short term, however investors are waiting for the FED meeting next Wednesday to take their chances.
The GBP/USD remains to trade inside recent range above 1.6600. Cable closed the day at 1.6655. The EUR/GBP is pressuring cable to the upside as Vodafone signed a deal to buy Spanish cable operator ONO for $10 Bn.
The USD/JPY confirmed its bounce at 101.22 key level as the pair rallied to test Friday's high at 101.85, it closed at 101.75. Indicators point to the south in the 1 and 4 hours charts.
Main headlines in the American session:
Empire State Manufacturing index 5.6 from 4.5; slightly weaker than forecast
EU adopts sanctions
US industrial production rise 0.6%; much firmer than expected
US joins EU in sanctions
US expect Putin to announce annexation of Crimea tomorrow
Wall Street digested well Crimea vote and closes positive
The serious reactions promised by the west were really soft sanctions limited to only 21 individuals. It was also interesting when Barack Obama said US hasn't decided yet in between "to escalate or to de-escalate the situation." However, investors seem to have digested well the situation with riskier assets advancing in the day.
The EUR/USD advanced for second day with the pair reaching its highest close since October 2011 at 1.3920. The pair seems now condemned to test the 1.4000 key price in special after past Friday Moody's upgrade to stable in the EU outlook. The pair looks neutral in the short term, however investors are waiting for the FED meeting next Wednesday to take their chances.
The GBP/USD remains to trade inside recent range above 1.6600. Cable closed the day at 1.6655. The EUR/GBP is pressuring cable to the upside as Vodafone signed a deal to buy Spanish cable operator ONO for $10 Bn.
The USD/JPY confirmed its bounce at 101.22 key level as the pair rallied to test Friday's high at 101.85, it closed at 101.75. Indicators point to the south in the 1 and 4 hours charts.
Main headlines in the American session:
Empire State Manufacturing index 5.6 from 4.5; slightly weaker than forecast
EU adopts sanctions
US industrial production rise 0.6%; much firmer than expected
US joins EU in sanctions
US expect Putin to announce annexation of Crimea tomorrow
Wall Street digested well Crimea vote and closes positive