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22 Feb 2013
Forex: EUR/USD under 1.3200 ahead of NY money
The EUR/USD took a hit at 1.3200, falling rapidly to 1.3158 low as the ECB informed that the next LTRO repayment would be about half of what was expected: €61.1 billion instead of €122.5 billion. Since then, the market has been digesting its new found position below the 1.3200 mark and the newly printed February low at 1.3158.
European investors are going for lunch and the US session will have little to watch on the economic calendar besides FOMC Powell and Fed's Tarullo's speeches, and Canada CPI and retail sales.
Earlier in the European morning, investors cheered the better than expected German IFO February survey. All three German IFO survey criteria came in higher than expected: Business Climate rose from 104.3 to 107.4 (consensus of 105.0); Current Assessment rose from 108.1 to 110.1 (consensus of 108.5); Expectations rose from 100.6 to 104.6 (consensus of 101.3). Earlier, German GDP figures confirmed the -0.6% quarterly contraction in Q4.
“Monitor the test of the support at 1.3187 (50% retracement) as the next support would be at 1.2998 (04/01/2013 low)”, wrote MIG Bank analyst Bijoy Kar, pointing to hourly resistances at 1.3291 (21/01/2013 high) and 1.3434 (20/02/2013 low).
European investors are going for lunch and the US session will have little to watch on the economic calendar besides FOMC Powell and Fed's Tarullo's speeches, and Canada CPI and retail sales.
Earlier in the European morning, investors cheered the better than expected German IFO February survey. All three German IFO survey criteria came in higher than expected: Business Climate rose from 104.3 to 107.4 (consensus of 105.0); Current Assessment rose from 108.1 to 110.1 (consensus of 108.5); Expectations rose from 100.6 to 104.6 (consensus of 101.3). Earlier, German GDP figures confirmed the -0.6% quarterly contraction in Q4.
“Monitor the test of the support at 1.3187 (50% retracement) as the next support would be at 1.2998 (04/01/2013 low)”, wrote MIG Bank analyst Bijoy Kar, pointing to hourly resistances at 1.3291 (21/01/2013 high) and 1.3434 (20/02/2013 low).