Forex: EUR/USD keeps highs above 1.3060

FXstreet.com (Barcelona) - The prevailing risk-on tone in the markets is propping up the upside in the cross, accelerated by the lack of relevant drivers in the euro zone as well. Ahead in the day, the weekly report on the US labour market is due, although the release would have no significant impact in the markets.

“The ongoing narrowing of the euro-zone sovereign credit risk premium is helping to support the euro especially against other European currencies which have benefitted as safe havens during the crisis period such as the Norwegian krone and Swedish krona”, commented Lee Hardman, Currency Analyst at BTMU.

EUR/USD is now up 0.39% at 1.3067 with the immediate resistance at 1.3085 (high Apr.23) ahead of 1.3130 (high Apr.19) and finally 1.3202 (high Apr.16).
On the downside, a break below 1.2997 (MA21d) would expose 1.2954 (low Apr.24) and then 1.2944 (MA200d).

Apr 25, 2013

European markets down except for Germany on Merkel comments

The German DAX 30 (+0.13%) and Scandinavian equity indexes are edging higher on Thursday, but the French CAC 40 (-0.22%), Italian FTSE MIB (-0.21%) and the Spanish IBEX 35 (-1.37%) are down while Eurozone officials and leaders speak. German Chancellor Merkel wants that bank shareholders can also suffer losses in the future and said the government rejects common European deposit insurance, for now. Also, she said that higher interest rates would be better for Germany. Finland grand committee head said the Euro would survive in case Cyprus leaves and rejects euro-area fiscal transfers. IMF’s Lipton and PIMCO’s Amey suggested more ECB easing.

Forex Flash: Bunds remain passive – RBS

Bunds reached the first target of 146.43, but fell below the next target of 147.00 and formed a dark cloud cover candlestick patter, which changes the view to a neutral for now.