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23 Sep 2013
EUR/USD opens higher on German election results – very tentative, though
FXstreet.com (Barcelona) - Merkel’s victory – bullish for the euro. Merkel’s allies failing to win convincingly – somewhat bearish for the euro. Net-net we get tepid upside in the EUR/USD to start the week.
With little / no economic news due out, traders get to focus on Washington politics
Some thought a Merkel victory in Germany’s national election would rocket the euro higher - and the EUR/USD with it. However, what the euro needed – and didn’t get - was Merkel victory and a sweep in the German Parliament by her allies to ensure implementation Merkel's ideal pro-authoritarian EU program. Now, much work remains for Merkel in terms of forming a productive, working coalition with those who are not necessarily big fans of hers.
On Monday, traders will get to digest manufacturing PMI from Germany, Europe and the US as well as the Chicago Fed National Activity Index in the US. Additionally, “Fed heads” Dudley and Lockhart will be giving speeches.
Technical outlook for EUR/USD
Technicians say the EUR/USD may end up at around 1.3620 – 1.3640 before the current upside move runs its course. They say dips to 1.3417 (the 8/20 close) – if they occur – can be bought.
With little / no economic news due out, traders get to focus on Washington politics
Some thought a Merkel victory in Germany’s national election would rocket the euro higher - and the EUR/USD with it. However, what the euro needed – and didn’t get - was Merkel victory and a sweep in the German Parliament by her allies to ensure implementation Merkel's ideal pro-authoritarian EU program. Now, much work remains for Merkel in terms of forming a productive, working coalition with those who are not necessarily big fans of hers.
On Monday, traders will get to digest manufacturing PMI from Germany, Europe and the US as well as the Chicago Fed National Activity Index in the US. Additionally, “Fed heads” Dudley and Lockhart will be giving speeches.
Technical outlook for EUR/USD
Technicians say the EUR/USD may end up at around 1.3620 – 1.3640 before the current upside move runs its course. They say dips to 1.3417 (the 8/20 close) – if they occur – can be bought.