EUR/USD sits at 1.4035, up from North American close Friday down around 1.3950.
Somebody sent me an fx alert (research piece) done by a major US bank over the w/e. It’s entitled “Market anxiety on G20 proves unwarranted.” The basic premise of the piece is that the G20 has fallen short of expectations for a plaza-style accord to manage the dollar’s decline. The bank surmises that this simply reinforces the status quo which has seen the greenback depreciating.
As Sean mentioned earlier there are strikes and barriers layered between 1.4050 and 1.4200, so it shouldn’t be a cakewalk for the euro bulls.
Talking of barriers; heard that a large 1.3800-1.4800 one month dnt was bought late last week. Something to tuck away for future reference.
For today little in way of euro zone data:
09:00 GMT: Euro zone industrial new orders for August expected +2.2% m/m, +19.3% y/y
European stocks look likely to get off to a flying start. Financial bookmakers see DAX up as much as 1.1%; CAC 40 up as much as 0.9%; FTSE up as much as 0.8%.
