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28 Aug 2013
Flash: EUR/USD still has strength to break 1.3400 – TD Securities
FXstreet.com (New York) - The EZ money supply data was stronger than expected, but details on lending activity for July were much weaker – this hasn’t been a help to the EU/USD, but with worries around Syria still the dominant focus for markets recently, safe haven demand has been the main pressure on EUR/USD, suggests the TD Securities Team.
Key quotes
“Earlier selling has not questioned the neutral range roughly defined by 1.33/1.34 however. A light data day today should leave Syrian headlines the dominant driver of the pair today, but it’s also worth noting that short-term German-US spreads have widened event further overnight—undercutting even more support for EUR/USD.”
“That adds to our confidence in an eventual break lower, or at least a stronger cap just above 1.34.”
Key quotes
“Earlier selling has not questioned the neutral range roughly defined by 1.33/1.34 however. A light data day today should leave Syrian headlines the dominant driver of the pair today, but it’s also worth noting that short-term German-US spreads have widened event further overnight—undercutting even more support for EUR/USD.”
“That adds to our confidence in an eventual break lower, or at least a stronger cap just above 1.34.”