More from FXstreet.com

Forex Flash: EUR/USD waits for Dollar weakness to rise to 2012 high of 1.3486 - Commerzbank

By FXstreet.com,  January 15, 2013, 06:11:00 AM EDT

FXstreet.com (Barcelona) - The 1.3400 is a formidable resistance from a psychological point of view and the EUR/USD has remained capped there this week. "It is just like in the years of the euro zone crisis just in reverse: between 2008 and 2012 everyone was surprised that the EUR exchange rates were not depressed more notably by the crisis. Now many are surprised by the fact that the crisis has been almost completely priced out by the FX market and the euro cannot appreciate further", wrote analyst Ulrich Leuchtmann, pointing to the need of a breach above to test the 2012 high of 1.3486, "despite the fact that the yield premiums of the periphery bonds are melting like snow in the sun - a clear sign that the bond markets are moving towards the "good equilibrium" which ECB President Mario Draghi had been aiming for in the autumn", which means that the crisis is seen as solved from the market's perspective.

Commerzbank analysts see the market reaching 2012 high through USD weakness rather than from Euro strength, just like during most of the EUR/USD upmove.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

Referenced Stocks:



Latest News Video



Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.48 0.03  0.22%
F $ 14.80 0.25  1.66%
CLWR $ 3.405 0.15  4.45%
YGE $ 3.761 0.66  21.32%
MSFT $ 34.89 0.19  0.54%
INTC $ 24.215 0.14  0.56%
CSCO $ 23.71 0.24  0.98%
S $ 7.38 0.09  1.23%