EUR/USD could be set to break out of its funk in a northerly trajectory with help from the tech stock pummeling on Wall Street. For FX traders, that's a dollar negative, one that's got more chance of playing out in the euro than the yen. Japan Inc. is much more tech-exposed than Europe, and the country also faces some uncertainty with PM Abe engulfed in a political scandal.
The risk of heavier regulation being brought to bear on U.S. tech companies will be another reason for global reserves managers to diversify away from the USD. All this in addition to an ECB which is edging toward an end to bond purchases. EUR/USD could soon be testing the minor resistance of the March high at 1.2446.
Source: Bloomberg Pro Terminal
Trader Nikolay Georgiev
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.