Appalling ZEW should have sent the euro skidding, but seems other factors are coming to the fore today.
Earlier comments from China’s CB advisor Xia Bin, who apparently is highly respected in CB circles has put a bid tone on the euro and there’s also talk of some ongoing diversification coming away from the dollar from Asian sovereigns.
Another factor could be a double no touch option expiry today range 1.40-1.47.
As i mentioned before there’s trendline resistance and a possible barrier at 1.4500 with a break through 1.4535 looking pivotal. A close above here can extend up to 1.4695 seen in June, but it’s a long way off at the moment.
EUR/CHF also looks to be helping the euro cause, having taken out stops earlier up through 1.1390/00 which has held the last 2 sessions, and pushed up to 1.1420/25. Real money sellers are apparently attempting to now push the cross back down.
Euro’s around 1.4485
