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10 Sep 2013
Flash: EUR/USD: Rebound Stalls - TD Securities
FXstreet.com (London) - Research teams at TD Securities see EUR/USD stalling.
Key Quotes:
"Robust Chinese data and moderated concerns on a Syrian attack have instilled a positive tone in European markets this morning, lifting most European equity indices up over 1% and tightening peripheral Eurozone yields against core German yields".
"EUR/USD has not participated in the optimism in Europe however, with a disappointing French industrial production figure helping to cap gains over the past two trading days".
"It’s also worth noting that German-US yield spreads, while slightly tighter over the past two days, do not corroborate the move higher in the FX spot rate".
"Broadly speaking, we continue to view the broader trend for EUR/USD as lower, and while there is scope for a small squeeze higher, the upper 1.32s appear to be a decent selling opportunity".
Key Quotes:
"Robust Chinese data and moderated concerns on a Syrian attack have instilled a positive tone in European markets this morning, lifting most European equity indices up over 1% and tightening peripheral Eurozone yields against core German yields".
"EUR/USD has not participated in the optimism in Europe however, with a disappointing French industrial production figure helping to cap gains over the past two trading days".
"It’s also worth noting that German-US yield spreads, while slightly tighter over the past two days, do not corroborate the move higher in the FX spot rate".
"Broadly speaking, we continue to view the broader trend for EUR/USD as lower, and while there is scope for a small squeeze higher, the upper 1.32s appear to be a decent selling opportunity".