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25 Mar 2013
Forex: EUR/USD extends lows on US Dallas Fed data
FXstreet.com (Barcelona) - Cypriot Parliamentary Finance Chairman Papadoloulos added to uncertainty in the markets by saying that they must assess benefits of a euro exit. Such comment made the EUR/USD heavy and trading below Friday’s close of 1.2991. With time the pair extended losses to 1.2916 as the NY session opened and has just printed a low at 1.2904 on the release of US Dallas Fed data.
From 2.2 in February, Dallas Fed Manufacturing Business Index rose to 7.4 in March. The US Chicago Fed Activity Index moved from negative territory at -0.49 (revised from -0.32) in February to 0.44.
Also weighing on the market is politics in Italy as PD’s Bersani tries to form a government, the Five Star Movement loses some of their domestic support after voting for a PD candidate for President in the Senate, and Berlusconi’s PdL has reportedly been gaining in the polls were there to be early elections. “With the Easter shortened week, we would expect Bersani to announce his decisions by mid-week on forming a government, personally resigning, or capitulating to new elections, or else this may be delayed until next week”, wrote TD Securities analysts.
“The upmove from 1.2887 is still intact with a crucial level at 1.2950 and I favor a break below the latter to unleash a slide towards 1.2843 low”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to intraday resistance at 1.3050, followed by the major hurdle at 1.3106.
From 2.2 in February, Dallas Fed Manufacturing Business Index rose to 7.4 in March. The US Chicago Fed Activity Index moved from negative territory at -0.49 (revised from -0.32) in February to 0.44.
Also weighing on the market is politics in Italy as PD’s Bersani tries to form a government, the Five Star Movement loses some of their domestic support after voting for a PD candidate for President in the Senate, and Berlusconi’s PdL has reportedly been gaining in the polls were there to be early elections. “With the Easter shortened week, we would expect Bersani to announce his decisions by mid-week on forming a government, personally resigning, or capitulating to new elections, or else this may be delayed until next week”, wrote TD Securities analysts.
“The upmove from 1.2887 is still intact with a crucial level at 1.2950 and I favor a break below the latter to unleash a slide towards 1.2843 low”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to intraday resistance at 1.3050, followed by the major hurdle at 1.3106.