EUR/USD remains at high levels on Thursday, as the pair trades in the mid-1.38 range in the European session. The dollar is broadly lower following comments by Fed chair Janet Yellen on Wednesday. In the Eurozone there is just one release. German PPI posted a small decline, as Eurozone inflation remains at low levels. In the US, the markets are keeping an eye on two key events - Unemployment Claims and the Philly Fed Manufacturing Index.
The euro remains firm following comments by Federal Reserve chair Janet Yellen on Wednesday. Yellen said there is little inflationary pressure on the economy, and it was unlikely that the Fed's inflation target of 2% would be met. She added that although the economy has showed signs of recovery, unemployment remains a sore spot. The Fed has abandoned its promise to maintain interest rates at least as long as the unemployment rate is above 6.5%, but the dovish stance we are seeing from Yellen means that a rate hike is unlikely in the near future.
Tensions between East and West continue over the volatile situation in Ukraine. There have been several skirmishes between pro-Russian militiamen and Ukrainian forces, and casualties have been reported on both sides. Secretary of State John Kerry and his Russian counterpart are meeting on Thursday, but a quick resolution is unlikely. Western Europe is dependent on Russian oil and gas, so we could see some market movement as the crisis continues.
EUR/USD April 17 at 12:15 GMT
EUR/USD 1.3858 H: 1.3864 L: 1.3822
EUR/USD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.3585 | 1.3649 | 1.3786 | 1.3893 | 1.4000 | 1.4149 |
- EUR/USD showed little movement in the Asian session, staying just above the 1.3830 line. The pair has posted modest gains in the European session.
- 1.3786 is providing support.
- 1.3893 continues to provide resistance, but this line has weakened as the euro moves higher. The next resistance line is at the key level of 1.40.
- Current range: 1.3786 to 1.3893
Further levels in both directions:
- Below: 1.3786, 1.3649, 1.3585, 1.3410 and 1.3335
- Above: 1.3893, 1.4000, 1.4149 and 1.4307
OANDA's Open Positions Ratio
EUR/USD ratio are made up of a majority of short positions, indicative of trader bias towards the dollar reversing its current direction and moving higher.
EUR/USD continues to post gains on Thursday. The pair is steady in the European session.
EUR/USD Fundamentals
- 6:00 German PPI. Estimate +0.1%. Actual -0.3%.
- 12:30 US Unemployment Claims. Estimate 316K.
- 14:00 US Philly Fed Manufacturing Index. Estimate 9.6 points.
- 14:30 US Natural Gas Storage. Estimate 35B.