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EUR/USD

The Euro pushed to highs above 1.3520 against the dollar in Asian trading on Tuesday, but was unable to sustain the gains during the day.

The latest house-price data recorded a small seasonally-adjusted increase for January with the lowest annual decline for three years. The US consumer confidence data was slightly stronger than expected with an increase to 52.5 for March from a revised 46.4 the previous month. There was an improvement in optimism surrounding the labour market which will help maintain some degree of optimism over the economy. There will also be expectations of a robust reading for the March employment report due for release on Friday which should support confidence.

Before ...

EUR/USD

The Euro jumped higher in Asian trading on Monday, due in part to to a covering of short positions, before retreating to the 1.3440 region in early Europe. The latest IMM data continued to record a near-record number of short Euro positions, maintaining the possibility of a squeeze on positions.

Provisionally, German consumer prices rose 0.5% in March to give a 1.1% annual increase, in contrast to an expected 0.3% monthly increase. The higher than expected figure could raise some unease within the ECB which could provide some degree of Sterling support.

Following the support deal agreed last week, immediate fears surrounding the Greek debt situation eased. The Greek government also launched ...

EUR/USD

The Euro tested support close to 1.3450 against the dollar on Thursday as underlying sentiment remained negative. There was firm support near this level and it recovered back to highs above the 1.3520 level later in the US session. There were again reports of Euro buying by central banks which provided important support for the currency. There was also some renewed evidence of short covering which helped underpin the Euro.

The US economic data was mixed with a slightly negative bias. There was a rise in durable goods orders for January which provided some scope for optimism over the industrial sector. In contrast, there was a significant increase in jobless claims to 496,000 in the latest week from a revised ...

EUR/USD

The Euro was unable to push back above the 1.41 level against the US dollar on Wednesday and remained generally on the defensive during the day.

Underlying confidence in the Euro-zone economy remained weak with further unease over the debt situation within Greece and further speculation that pressures could spread to other countries with some rumours of a forthcoming debt-rating downgrade for Portugal.

The US housing data was again weaker than expected with new home sales declining to an annual rate of 342,000 for December following a revised figure of 370,000 the previous month. There was evidence that sales demand triggered by tax credits was fading which tended to undermine overall sales ...