EUR Pairs Vulnerable After Losing ST Trends Pre-ECB
- More weak price data out of Euro-Zone compounds deflation fears.
- EUR slipping versus three major counterparts - AUD, JPY, USD.
- End of week economic calendar packed with event risk - ECB, NFPs.
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More weak price data out of Europe leaves the Euro especially vulnerable ahead of tomorrow's European Central Bank policy meeting. The sharpest rate of decline in the February PPI since December 2009, the weak inflation environment has been compounded by falling wage growth - also near 2009 lows.
While the weak fundamentals haven't translated into weaker Euro prices, the short-term uptrend seen from the lows late last week has been broken in several pairs: EURAUD, EURJPY, and EURUSD. While patience is a virtue - certainly waiting for confirmation of a range break is a good idea ahead of significant event risk - we can't help but notice that these Euro rallies have started to fade at interim resistance levels.
--- Written by Christopher Vecchio, Currency Analyst
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