FRX: Euro Puts in Bullish Weekly Close to Open Fresh Upside Extension
We have seen a fairly quiet start to the week, with most currencies consolidating recent gains against the buck. However, Friday’s bullish close in the Euro above 1.3215 does now open the door for fresh upside over the coming sessions back above 1.3300. Meanwhile, the Yen has been the one standout in Monday trade, with this currency reversing course and finding renewed bids. USD/JPY has broken back below Friday’s low to end a sequence of consecutive daily higher lows. Nevertheless, any setbacks in this major could be limited, and the improved overnight China HSBC Flash PMIs have helped to support pullbacks.
Moving on, the fallout from the French election could factor in to Monday trade, with incumbent Sarkozy putting a poor showing over the weekend. Elsewhere, Australian PPI data came in much softer than expected earlier today, and the commodity currency has been a relative underperformer on the back of this news. The development increased the likelihood of a rate cut at the upcoming meeting. The producer price results now set the stage for the more important CPI release due tomorrow.
