From Monday the Euro exchanged hands vs the US Dollar in a exhausted 1.33-1.3330 range in 24 hours of trading. The achievement is set to return to the market with the much estimated BoJ monetary policy decision out of the way and the US market re-opening after Martin Luther King festivity. The policymakers will discuss possible options for indebted Cyprus, Greece and Spain. There are no other important releases on the agenda.
Largely, the EUR/USD trades in a well defined short term 1.3260-1.3400 period, with either border of the range having to give up as a pre-requisite to clear up the picture for traders. Asian shares held steady on Monday after surging to multi-month highs last week. US market is closed for Martin Luther King Day after ending Friday at 5-year highs on a solid start to the quarterly earnings season.
Republicans said the House will consider a bill to raise the US debt ceiling enough to allow the country to pay its bills for another 3 months, so that the Democratic-controlled Senate could pass a budget plan that shrinks the federal deficit.
Today, the Eurogroup finance minister meeting is due to resume for its second day of talks. According to Kathy Lien, co-founder at BKassetmanagement, “while nothing new is expected tomorrow, we will still be watching the headlines out of Europe especially with ECB President Draghi expected to speak in the afternoon.”
Another area of interest for Euro traders today will be the release of key economic data, such as the German ZEW survey, where an upbeat number is expected in the sentiment index.