The times they are a changing…Despite comments from Weber suggesting as many as three ECB rate hikes, EUR/USD is trading heavy. As Gerry likes to say, trees don’t grow to the sky…Looks as though we need to shake out some longs before the rally can resume, at a minimum.
European sovereign debt concerns are getting greater play these days as Greek rates rise to euro0era highs. Traders fear a half-assed “comprehensive” solution or a solution that puts Germany and France in a less-robust credit position as they take on a greater share of the burden from the PIIGS.
Oil price remain elevated, and as such, will attract Mid-East accounts to diversify their growing reserves. 1.3865 is next support of note. 1.3960 is solid resistance on rebounds.
