EUR/USD having opened firmer from where North America left off Wednesday, is seeing very steady trade in early Europe, presently at 1.4045.
The USD is being underminned by worries large emerging countries (BRICs) will aggressively diversify out of USD and US assets. As mentioned in opening commentary we feel these fears are overblown.
Risk appetite is in good shape at present and this with be helping underpin EUR/USD.
Sentiment will have been helped by the following overnight developments. Australian jobs data was better than expected, China’s Jan-May urban fixed asset investment rose sharply and more than expected and Japan’s Q-1 GDP data was revised upward .
Technical support for EUR/USD 1.4010, resistances 1.4055/60 and 1.4090/00.