AceTraderForex Jun 30: IntraDay Maket Moving News & Views & data to be released today

Trading Discussion Currencies
1

[B]Intra-Day Market Moving New and Views

30 Jun 2014[/B] [I]02:35GMT[/I]

[B]EUR/USD[/B] -  ... The single currency maintained a firm undertone after rising to 1.3650 on Friday n bids are now located at 1.3640-30 n more at 1.3620-10 with stops only seen below 1.3600. On the upside, some stops are tipped abv 1.3650 n 1.3655.

Bloomberg news reported that German Chancellor Angela Merkel and French President Francois Hollande, in a telephone call lasting more than two hours, told Russian President Vladimir Putin and Ukraine chief Petro Poroshenko to start peace talks and reminded them of a looming deadline for Kremlin action.

In other news, the Bank for International Settlements (BIS) said in its annual report released earlier that loose monetary policy makes it easy for euro-area banks to keep bad debt on their books, potentially delaying the flushing out of sour loans.

Last Friday, statement from France’s Hollande said, qoute:
‘will hold phone talks with Germany’s Merkel, Ukraine’s Poroshenko, Russia’s Putin on Sunday; EU will take more measures if no progress on Ukraine by Sunday.’

Also, statement from German Chancellor Angela Merkel qoute:
‘progress made on Ukraine peace process is not satisfactory; if no progress made on any of the points of Ukraine peace plan then we are prepared to take severe measures.’

[B]Data to be release next week: [/B]

Japan industrial output, construction orders, housing starts, Germany retail sales, Italy producer prices, consumer prices preliminary, CPI, U.K. mortgage approvals, mortgage lending, euro zone inflation, Canada GDP, U.S. Chicago PMI, pending home sales [B]on Monday.[/B]

Japan Tankan, China NBS manufacturing PMI, HSCB manufacturing PMI, Japan manufacturing PMI, Australia RBA rate decision, Switzerland PMI, Italy Markit/ADACI manufacturing PMI, unemployment rate, France Markit manufacturing PMI, Germany Markit/BME manufacturing PMI, unemployment rate, unemployment change, euro zone Markit manufacturing PMI, unemployment rate, U.K. Markit/CIPS manufacturing PMI, U.S. Markit manufacturing PMI, ISM manufacturing PMI, construction spending [B]on Tuesday. [/B]

Australia exports, imports, trade balance, U,K. Nationwide house price, Markit/CIPS construction PMI, euro zone producer prices, U.S. ADP employment, durable goods revised, factory orders, Canada manufacturing PMI [B]on Wednesday. [/B]

China NBS non-manufacturing PMI, HSBC service PMI, Australia building approvals, retails sales, France Markit/ABACI service PMI, Fracne Markit service PMI, Germany Markit service PMI, euro zone Markit service PMI, retails sales, ECB rate decision, U.K. Markit/CIPS service PMI, Canada trade balance, exports, imports, U.S. non-farm payrolls, unemployment rate, jobless claims, average earnings, trade balance, Markit service PMI, ISM non-manufacturing PMI[B] on Thursday. [/B]

Germany industrial orders, U.K. Halifax house prices, U.S. markets closed for July 4 Independence Day holiday [B]on Friday.[/B]

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[B]Intra-Day Market Moving New and Views

04 Jul 2014[/B] [I]02:13GMT[/I]

[B]EUR/USD [/B]- ... Despite yesterday's brief bounce to 1.3664 at European open, renewed selling interest there knocked price lower n euro nose-dived to an intra-day low at 1.3596 after dovish comments from ECB's president Draghi who said that take-up of the TLTRO could reach EUR 1 trillion. Selling interest is now tipped at 1.3620-25 n more at 1.3635-40. On the downside, mixture of bids n stops is located at 1.3600 but some bids are noted at 1.3580-75.

ECB’s Draghi announced that starting January 2015, the ECB will reduce the frequency of its policy meetings to every 6 weeks, allowing for the publication of minutes a few weeks later. He added that studies on ABS have intensified but stressed the need for unanimity among council members about the possible use of non-standard measures.

On the data front, Germany will release its industrial orders at 06:00GMT.

Yesterday, ECB’s Executive Board member Benoit Coeure said, quote: ‘only way to move from current low interest rates is to reinvigorate euro zone’s productive potential; govts should not view period of low rates as an invitation to abandon fiscal prudence; states should stick to rules of new EU fiscal framework, not stretch these to point where framework is discredited; confident euro zone banks with strong business models will make full use of TLTROS.’

Quoting the statement from ECB’s policymaker Jens Weidmann :‘ultra-loose monetary policy leads, over time, to financial stability risks; concerned that low rates are easing pressure on govts to reform, consolidate budgets; important to stress that ECB will not delay a normalisation of monetary policy out of regard for state finances; for the euro zone, monetary policy has made its contribution to deliver price stability; will take a while for June policy measures to take full effect; I regard it as wrong to speculate about further measures immediately after June decisions.’

[B]Data to be released on Friday: [/B]

Germany industrial orders, U.K. Halifax house prices. U.S. independence day holiday.

3

[B]Intra-Day Market Moving New and Views

08 Jul 2014[/B] [I]01:59GMT[/I]

[B]EUR/USD[/B] - .. Euro moves narrowly but with a firm bias in subdued Asian trading after Mon's rebound from European near 2-week low of 1.3676.

Short-term specs sold the single currency at European open on stop hunting and although price briefly penetrated Friday’s 1.3586 low, good buying interest emerged at 1.3676 and euro staged a rebound to 1.3602, such move prompted broad-based short-covering in euro vs USD & GBP, the pair later rose marginally to session high of 1.3609 in NY afternoon, the 1.3610 at Asian open.

Although consolidation with mild upside bias is seen, reports of fairly good offers at 1.3615/25 should cap intra-day gain, so day traders can sell the euro on marginal rise for re-test of 1.3676 later in the day.
Initial bids are noted at 1.3600 and more at 1.3590-85 with stops below 1.3675, however, traders reported a layer of bids at 1.3665-50, so downside on the euro also looks pretty limited today.
Germany & France will release trade data at 06:00GMT & 06:45GMT but these are not expected to move the euro much.

White House said Obama, Hollande decide U.S., Europe should take further coordinated measures to impose costs on Russia if it does not take immediate steps towards de-escalation in Ukraine.

[B]Data to be released on Tuesday: [/B]

Japan current account, economic watchers, Australia NAB business confidence, business conditions, Germany imports, exports, trade balance, France trade balance, Swiss CPI, retail sales, UK industrial output, manufacturing output and U.S. redbook retail sales.

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[B]Intra-Day Market Moving News and Views

17 Jul 2014[/B] [I]09:02GMT[/I]

[B] EUR/USD[/B] - 1.3533… Euro zone Jun inflation 0.1% m/m n 0.5% y/y, in line with expectations. Euro zone Jun inflation ex-food n energy 0.1% n 0.8%, same as forecasts.

Earlier Euro edges higher in European trading as buying interest at 1.3521/20 lifted the single currency. Intra-day broad based buying of euro vs usd, gbp & yen suggests the single wud gain a bit of respite n sideways consolidation abv y’day’s 6-week low is expected.

On the upside, offers are tipped at 1.3540-50 n more abv with some stops abv 1.3570/80. On the downside, bids are reported below 1.3520 with indicated option defense at 1.3500.

EBRD (The European Bank for Reconstruction and Development) said notes EC decision concerning bank’s lending in Russia n will now be consulting all shareholders on the implications.

Despite re-test y’day’s 1.3521 low at European open, euro has edged higher on intra-day broad-based short-covering in the euro esp vs usd & gbp.

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[B]Intra-Day Market Moving News and Views

24 Jul 2014[/B] [I]08:57GMT[/I]

[B]EUR/USD[/B] - An EU source says 'German government believes EU cud move to sanctions on sectors of Russian economy by end of July; Germany government favours a time limit on how long new Russian sanctions should last.'

24 Jul 2014 [I]07:55GMT[/I]
EUR/USD - … Euro has swung from loss to gain in volatile European trading.

Although euro bears gave the single currency a broad-based bashing following FT headline of tough EU sanctions on Russia, price easily penetrated option barrier at 1.3450 n hit a fresh 8-month trough of 1.3438, however, better-than-expected Germany mfg & serv. PMIs triggered a wave of short-covering, euro quickly climbed above Asian 1.3463 high, then yesterday’s top at 1.3474 to 1.3476.

Offers are noted at 1.3470/80 n these are fully absorbed, stops above 1.3491/96 may be hit. Bids are seen at 1.3460-50 n more below, suggesting choppy sideways trading may continue in European morning.

Germany manufacturing n services PMI came in better-than-expected at 52.9 n 56.6 vs forecasts of 52.0 n 54.5 respectively.

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[B]Intra-Day Market Moving News and Views

25 Jul 2014[/B] [I]08:20GMT[/I]

[B]EUR/USD [/B]- .. Ifo economist Wohlrabe said, quote:

‘scale of drop in climate index surprising but wouldn’t call it a change in trend;
geopolitical tensions come at same time as slowdown fm very good Q1 for German business;
German domestic business climate still strg but export expectations at lowest lvl in more than a year;
influence of Ukraine n mid-east conflicts cannot be measured in concrete terms;
expects German economic growth for 2014 to be as forecast at 2.0% or perhaps slightly higher.’

The single currency fell to intra-day low of 1.3443 after German Ifo Jul business sentiment index unexpectedly dropped to 108.0, forecast was 109.4.

However, talk of bids at 1.3440-30 n more below has contained weakness, so minor range trading abv y’day’s fresh 8-month trough at 1.3438 is likely. Offers have been lowered to 1.3455/65 n more are tipped at 1.3475/85, suggesting selling euro on recovery is the way to go.

Earlier on, Euro maintains a steady posture at European opening n has shown muted reaction to the release of slightly better-than-expected German GfK consumer confidence.

The German consumer morale index climbed to its highest level in over 7 years. Aug reading came in at 9.0 vs forecast of 8.9 (prev. reading was 8.9).

As mentioned in previous update, market is awaiting release of the important German Ifo business climate index later at 08:00GMT where street forecast for Jul reading is 109.4 vs prev. reading of 109.7. If actual comes in lower than expectation, expect another round of euro bashing but if it is sharply higher, then be prepared for more broad-based short-covering in euro vs usd, yen & gbp.

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[B]Intra-Day Market Moving News and Views

30 Jul 2014[/B] [I]09:00GMT[/I]

[B]EUR/USD[/B] - .... EZ economic sentiment, services sentiment n consumer confidence were reported at 102.2, 3.6 n -8.4 vs forecasts of 101.8, 4.4 n -8.4 respectively.

Euro shows muted reaction to slightly higher-than-expected EX economic confidence index, a survey of consumer confidence after hitting fresh 8-month low of 1.3395 earlier in Europe.

Offers are reported at 1.3415/25 with stops abv there, more selling interest is touted at 1.3440/45. Although some stops were tripped when price penetrated 1.3400, bids at 1.3395/90 contained weakness, suggesting euro may edge higher ahead of release Germany CPI at 12:00GMT, then U.S. ADP private payrolls & the key Q2 GDP at 12:15GMT & 12:30GMT respectively.

30 Jul 2014 [I]08:00GMT[/I]

EUR/USD - ... The single currency met renewed selling interest at 1.3415 in Asia n dropped below 1.3400 for the first time since early Nov 2013 to a fresh 8-1/2 month trough at 1.3395/96 in early European morning on dlr's broad-based strength.

As price continues to remain under pressure in Europe, downside bias remains for further weakness to 1.3370/80 n traders shud look to sell on intra-day recovery.

Offers have been lowered to 1.3410/20 n more abv at 1.3430/35 with stops building up abv there whilst initial bids are noted at 1.3370/80.

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[B]Intra-Day Market Moving News and Views[/B]

[B]01 Aug 2014[/B] [I]08:00GMT[/I]

[B]EUR/USD[/B] - ... Euro languishes abv Wed's 8-1/2 month trough of 1.3366 in European morning. Price showed muted reaction to release of Markit Jul mfg PMI fm Italy, France, Germany & the EZ. The actual readings came in below market consensus (except France, Jul was 47.8 vs forecast of 47.8).

The lack of intra-day price swings in early European morning suggest further range trading wud continue as traders are keeping their powder dry until release of the key U.S. payrolls data at 12:30GMT. Offers are reported at 1.3495/05 with some stops abv there, then more offers are tipped at 1.3420/30. On the downside, some bids are touted at 1.3370-60 with continued market chatter of an option barrier at 1.3350, then stops are reported below there. Until the U.S. jobs report is out, selling euro on recovery is the way to go.

Earlier, with release of Markit Mfg PMI of several major countries in the EZ due out shortly, Reuters reported that inflationary pressures in the euro zone have risen to a 27-month high, suggesting the ECB’s efforts to fend off deflation are working, an indicator designed to predict cyclical trends showed on Fri.

The Eurozone Future Inflation Gauge (EZFIG), published by the Economic Cycle Research Institute (ECRI), rose to 96.7 in June from April’s 96.2.

Annual inflation in the euro zone fell to just 0.4% in Jul, its lowest since the height of the financial crisis in 2009, official data showed on Thur. Therefore, most traders wud take this reading with a pinch of salt !

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[B]Intra-Day Market Moving New and Views EUR/USD

04 Aug 2014[/B] [I]01:12GMT[/I]

[B]EUR/USD[/B] - .... News over the weekend worth noting, Bloomberg reported that 'Portugal's central bank took control of Banco Espirito Santo SA in a 4.9 billion-euro ($6.6 billion) bailout that will leave junior bondholders with losses.

‘The full contribution of shareholders and of subordinated debt holders to the losses of Banco Espirito Santo will be ensured in accordance with the burden sharing rules’ set out in 2013, the European Commission said in a statement on Sunday as it approved the plan.

Subordinated bonds have been hit by European regulators seeking to share the cost of resolving distressed banks with bondholders, with losses inflicted on holders of junior debt of lenders including Britain? Co-Operative Bank Plc and Spain’s Bankia SA. (BKIA).

Banco Espirito Santo has 457 million euros of Tier 1 bonds, its most junior debt securities, and 853 million euros of more-senior Tier 2 bonds, making a total of about 1.3 billion euros, according to data compiled by Bloomberg. The lender has 13.5 billion euros of senior bonds and 4.63 billion euros of secured notes outstanding. All in all, it has 20.4 billion euros of bond debt outstanding, the data show.

Banco Espirito Santo is 20 percent owned by Espirito Santo Financial Group, part of a chain of companies linked to the bank? founding family. The lender? largest outside shareholders include France? Credit Agricole SA (ACA), owner of a 14.6 percent stake, as well as Brazil? Banco Bradesco SA (BBDC4), which has a 3.9 percent holding.

Banco Espirito Santo shares slumped 67 percent in July as three parent companies linked to the Espirito Santo family requested protection from creditors and concern grew that the bank may have to inject additional capital into its Angola unit.
Vitor Bento, who will be Novo Banco’s chief executive officer, said the decision removes key uncertainties around the bank and the lender is now stronger and safer than before, according to a statement.

[B]Next week [/B]will see the release of Australia’s retail sales, Swiss PMI, UK Markit CIPS Cons PMI, Eurozone producer prices, U.S. iSM New York index on [B]Monday.[/B]

Australia’s import, export and trade balance, Japan’s services PMI, China HSbC services PMI, Reserve Bank of Australia rate decision, German and Eurozone Markit services PMI, Eurozone retail sales, U.S. redbook, U.S. Markit services PMI, ISM non-manufacturing PMI, durable goods, and factory orders [B]on Tuesday. [/B]

New Zealand HLFS unemployment rate, UK BRC shop price index, Japan’s leading indicator, German industrial orders, Swiss CPI, U.K. industrial and manufacturing output, Canada’s import, export and trade balance [B]on Wednesday. [/B]

Australia’s unemployment rate, Swiss consumer confidence, German industrial output, Bank of England rate decision, eurozone rate decision, Canada’s Ivy PMI and building permit [B]on Thursday.[/B]

Japan’s current account, Australia’s housing finance, China’s export, import and trade balance, Swiss unemployment rate, German import, export and trade balance, U.K. trade balance, Canada’s unemployment rate, U.S. productivity, wholesale sales and inventories [B]on Friday.[/B]

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[B]Market Review - EUR/USD [/B]

[B]EUR/USD -[/B] … Yesterday on Europe closing saw the single currency traded narrowly on Monday after Fri’s strong rebound to 1.3445. Euro ratcheted lower from last Fri’s NY high at 1.3445 to 1.3409/10 in New York b4 recovering. Some bids are now reported at 1.3410-05 whilst some offers are tipped at 1.3430-40, however, trading was subdued as investors are waiting for the ECB’s rate decision on Thursday.
Earlier Fed issued a statement, quote:
banks eased lending standards for many loan categories amid broad-based pickup in loan demand in 3-month period to July;
many banks eased standards on prime residential home loans;
little change in standards for other household loans; domestic banks eased lending standards for commercial/industrial, most types of commercial real estate loans;
banks saw stronger demand for many more loan categories that in April survey - quarterly senior loan officers survey.

[B]Tuesday will see[/B] the release of Australia’s import, export and trade balance, Japan’s services PMI, China HSBC services PMI, Reserve Bank of Australia rate decision, German and Eurozone Markit services PMI, Eurozone retail sales, U.S. redbook, U.S. Markit services PMI, ISM non-manufacturing PMI, durable goods and factory orders.

11

On the European closing, and despite last Friday’s active short-covering rally from as high as 1.3433 on Friday, the single currency ratcheted lower to 1.3381 in New York on Monday on renewed worries about the impact of the Russia-Ukraine conflict on Germany, the euro zone’s largest economy.
Offers are not tipped at 1.3400 and more at 1.3410-20.
On the downside, some bids are located at 1.3375-70 with mixture of bides and stops seen at 1.3350.

Last night, U.S. president Obama told Poroshenko in phone call any Russian intervention in Ukraine is “unacceptable”.
U.N. chief welcomes “forward movement” toward creation of Iraq gov’t, commends Iraqi president for asking Haider Al-Abadi to form government

[B]Tuesday [/B]will see the release of U.K. BRC retail sales, BOJ meeting minutes, Japan’s domestic CGPI, Australia’s house prices, NAB business conditions and business confidence, Japan’s industrial output, eurozone ZEW economic sentiment, current conditions and economic sentiment, U.S. Redbook and Federal Budget.

12

12 Aug 2014 08:44GMT

Russian Defence Ministry says begins military exercises in disputed Kuril islands in Pacific Ocean near Japan - INTERFAX.

12 Aug 2014 07:59GMT

EUR/USD - ....German Econ Ministry statement, quote:

‘after strg Q1, economic momentum will slow in Q2;
weaker Eurozone n uncertainty over Russia/Ukraine conflict n middle east are main factors;
underlying positive economic trends still intact.’

French Foreign Minister said ‘Russian Humanitarian convoy to Eastern Ukraine may be “cover” for Russian attempt to install presence.’

A piece of news report fm WSJ on Mon worth noting. Despite last Thur’s after ECB President Mario Draghi laid out a long list of reasons why the euro should be weaker. The response: the currency has since gained almost 0.6% against the dollar, climbing again above $1.34 Mon.

One reason may be that bets against the euro are already maxed out. Data released Fri by the U.S. Commodity Futures Trading Commission (CFTC), covering the week up to Tue August 5, show a big buildup in classic “risk aversion” trades?ositive bets on the buck, in other words.

Bets against the euro were already at their highest level since May 2013 before last week’s numbers were in, but they are now at the most bearish point seen since mid-2012. The CFTC numbers cover a tiny slice of the market, but they are a reasonably good proxy for speculative accounts as a whole. With so many accounts pointing in one direction, this means the currency is subject to unpredictable pops higher, despite the heavyweight list of reasons to sell.

That was why on Fri euro rallied after President Obama ordered airstrike in Iraq as investors took profit ahead of the w/end to lock in profits. Looks like the downside on the euro looks limited as shorts are eagerly waiting price to head lower to take profits.

13

[B]Intra-Day Market Moving News and Views

EUR/USD[/B] - … Fundamentally, yesterday’s downbeat German ZEW investor confidence does not bode well for Germany & the euro. WSJ reported the German economy is struggling. And, worryingly, that might not just be down to Russia. Tue’s ZEW survey of analyst n investor expectations, fell for the 8th month running in Aug. What’s more, the figure failed even to meet forecasters’ modest expectations.

Although pundits have been quick to ascribe the weakness to Russia’s conflict with Ukraine n subsequent western sanctions on Russia. On the other hand, maybe the survey’s softness shouldn’t be a surprise. German industry has been misfiring during recent months. Factory orders slumped 3.2% on the month in Jun. May’s ind. production data posted their biggest drop in 2 years n only registered a modest rebound in Jun, well short of expectations.

Russian trade made up a mere 3.8% of total German trade in 2013. There are signs the euro zone’s recovery might be running out of steam. Italy, the single currency’s 3rd biggest economy, slipped into yet another recession during the 2nd quarter. France, the 2nd largest economy, is likely to be in recession or on its way.

Germany found an outlet for its exports in the wider global economy during the euro-zone crisis, conditions in the developing economies are also looking tougher. Thur’s 2nd quarter German GDP data are likely to show no growth or even a modest contraction, though economists are confident in a rebound during the second half of the year. But that might be a shade optimistic given the squeeze German exporters are facing from all sides.

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[B]Intra-Day Market Moving New and Views

17 Aug 2014[/B] [B]22:58GMT[/B]

[B]EUR/USD [/B]- .... News from Reuters, German Foreign Minister says 'he and Russian, Ukrainian, French foreign ministers agreed to report back to their leaders and then possibly agree Monday or Tuesday how to continue talks; the aim remains to bring about a ceasefire in Ukraine.'

On its Friday closing, although euro climbed to an intra-day high of 1.3412 in New York morning after the release of a series of U.S. economic data, including NY Fed manufacturing, PPI, foreign treasury buy, industrial and manufacturing output and University of Michigan sentiment.
Selling interest below there capped euro’s upside somewhat. The pair later retreated to 1.3378 in part due to active cross buying in Japanese yen versus the euro after the news.
While EUR/JPY tumbled from 137.62 to 136.77. Offers are now tipped at 1.3400-10 with stops building up above 1.3420.
On the downside, some bids are located at 1.3380-75 and 1.3360-50.

Next week will see the release of U.K. rightmove house prices, China house prices, eurozone eurostat trade and U.S. NAHB housing market index [B]on Monday. [/B]

New Zealand’s producer prices, RBA meeting minutes, eurozone current account, U.K. CPI, PPI and RPI, U.S. building permits, core CPI, housing starts, Redbook and Cleveland Fed CPI [B]on Tuesday. [/B]

RBA’s Stevens testimony, Japan’s exports, imports and trade balance, Australia’s Westpac leading economic index, Japan’s all industry index, Germany’s producer prices, BOE’s meeting minutes and CBI trend, Canada’s wholesale trade and U.S. FOMC minutes [B]on Wednesday. [/B]

[B]On Thursday,[/B] Japan’s manufacturing PMI, China’s HSBC manufacturing PMI, Swiss trade balance, France’s Markit manufacturing and service flash PMI, Germany’s Markit manufacturing flash PMI, eurozone’s manufacturing and service flash PMI, U.K. PSNCR and retail sales, U.S. jobless claims and Markit manufacturing PMI, eurozone consumer confidence, U.S. Philly Fed business index, and existing home sales on Thursday. The 3-day annual Federal Reserve Bank symposium held in Jackson Hole, Wyoming begins.

Canada’s CPI and retail sales [B]on Friday[/B].

15

[B]
Intra-Day Market Moving News and Views

EUR/USD[/B] - 1.3396… Although euro has chopped inside the 1-1/2 week 100 points range of 1.3333-1.3433, the fundamental outlook shud weigh on the single currency over coming weeks.

Reuters reported German Bund yields held near their record lows around 1% on Fri, with investors increasingly betting the ECB will ease monetary policy further to lift a stagnating economy struggling with low inflation. Data showed on Thur the euro zone economy failed to grow in the 2nd quarter even before the sanctions the West n Russia imposed on each other over the conflict in Ukraine started to bite.

Ten-year Bund yields on Reuters closed near 0.966%, yields on lower-rated Italian n Spanish bonds also hit all-time lows at 2.579% n 2.272% respectively. While the ECB is unlikely to take fresh measures in the next few months as it wants to assess the impact of cheap 4-year loans to the banking sector it will start to dole out in Sep n Dec, many in the market say it will eventually have to embark on asset purchases (QE). But pressure on it to act sooner rather than later could accelerate this week if preliminary euro zone manufacturing activity data shows counter sanctions between the West n Russia are beginning to take a toll. Against this backdrop, the market remained biased towards another downward lurch in Bund yields.

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[B]Intra-Day Market Moving News and Views

19 Aug 2014[/B] [I]07:23GMT[/I]

[B]EUR/USD[/B] - .... News from Reuters, citing source fm the Kremlin, who says 'Russia is working on additional retaliatory measures in case western nations impose new sanctions.'

While the single currency weakened shortly after European open due to renewed broad-based buying in greenback n active cross-selling in euro vs jpy n stg. Price penetrated y’day’s NY low at 1.3353 to 1.3343/44.

At present, offers are lowered to 1.3355/60 n then 1.3370-80 with stops emerging abv 1.3400. On the downside, bids are noted at 1.3335/30 n around 1.3320 with stops located just below 1.3300.

Earlier on the Asian opening, the single currency remained under pressure in Asia following yesterday’s weakness due to broad-based strength in dlr in NY session after upbeat U.S. homebuilder’s confidence. Price dropped fm Aust.'s high of 1.3363 to 1.3354 shortly after Asian open n then hovered near y’day’s NY low at 1.3553.

Despite the near 2-week broad sideways move inside 1.3333-1.3433 range, traders are still favouring to sell the euro on intra-day rally due to ongoing expectations that monetary stimulus programs in the U.S. will wind down n the ECB will take steps to loosen policy. Offers are noted at 1.3370-80 n then 1.3400 with mixture of offers n stops located abv 1.3430. Bids fm st specs are reported at 1.3350/45 n below with stop below 1.3330, however, there has been market chatter of option barrier at 1.3300. No major data are due out except the EZ current account data at 08:00GMT.