Euro Set to Test 1.5000 (Opening Comment)

Published October 15th, 2009 - 09:24 GMT


OPENING COMMENT

There has been no sign of a slowdown in USD selling with any hopes of the buck rallying on positive local news fading on Wednesday. Stronger than expected retail sales and out of the park earnings from JP Morgan, only resulted in some bearish USD consolidation, before the release of the dovish Fed Minutes accelerated Dollar declines. All currencies are higher on the day, with Kiwi leading the way, aided by the firmer CPI data, and Aussie just behind, on the back of hawkish comments from RBA Stevens who also did not show any concern over the appreciation in the Aussie. Most major currencies are at or near 2009 highs against the greenback and the key level to watch in the FX market today is undoubtedly the psychological barrier by 1.5000 in Eur/Usd. Goldman and Citigroup are due to report on Thursday and we see no reason why these financial giants will fail to at least match expectations. Elsewhere, in Japan, FinMin Fujii has reiterated recent comments that countries must not compete in competitive devaluations. Looking ahead, the ECB is set to publish its monthly report at 8:00GMT, with Swiss ZEW and Eurozone CPI (0.1% expected) at 9:00GMT. US equity futures are mixed, while commodities remain bid. 


Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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