Well it took quite a while, but euro bears finally after much huffing and puffing blew the 1.3900 demand aside. Stops below have been triggered and we’ve moved down to 1.3985 at writing.
Risk appetite is on the wane and sentiment won’t have been helped by the earlier release of Chinese trade data for June. The surplus was $8.15 bln compared to $13.4 bln in May, and worse than the median forecast of $15.0 bln. Exports fell a hefty -21.4% y/y. Hardly bodes well for Chinese economic recovery.
Sources now note buy orders at 1.3880 with stops below there and then more buy orders down at 1.3850.
