Euro dollar rate today: EUR / USD outlook remains bullish, meanwhile EUR / GBP seen stuck in a rut
A look at the foreign exchange markets at mid-morning in London shows:
The euro dollar exchange rate is trading softer on Monday morning; EUR/USD is quoted at 1.3675 at 10:26.
The euro pound exchange rate is 0.12 pct lower at 0.8456.
"A troublesome euro remains, and although sterling seems to have gotten its groove back against the dollar, it’s going to have to work quite a bit harder to achieve the levels we saw last month against the euro," says Sasha Nugent at Caxton FX commenting on the EUR to GBP rate.
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Euro dollar exchange rate today
We consider the latest view on the outlook for the euro dollar exchange rate at the start of a new week.
We start off with Emmanuel Ng at OCBC Bank who says he is bullish on the EUR:
"Apart from expected dollar volatility stemming from US data releases, the slew of EZ PMIs on Thursday and the German Oct Ifo on Friday may also potentially sway the EUR-USD. In the background, coalition talks in Germany are also due to begin mid-week with parliament to convene for the first time since the recent elections.
"In the interim, we stay positive on the EUR-USD and support for the pair is seen towards 1.3645 while another break above 1.3700 may pave the way to 1.3750."
Also backing further euro dollar rate gains today are ICN Financial Analysts:
"The pair managed to move to the upside around the previous top at 1.3711, as the overall upside move might extend triggered by stability above Linear Regression Indicators and 1.3605 levels represented in 88.6% correction as shown on graph.
"Stochastic shows overbought signals that requires stability above 1.3605 to offset the possibility for a downside correction.
"The trading range for this week is among the key support at 1.3480 and key resistance at 1.3970.
"The general trend over short term basis is to the upside with daily closing between 1.3345 and 1.3970."
Looking at recent price action we can see momentum does indeed rest with the euro.
"EURUSD hit 1.3704 on Friday. Offers at 1.3700/10 (year highs) limited the upside, the positive momentum strengthened. Traders chase dip-buying opportunities, large stops are reported above 1.3715. The mounting pressure ahead of NFP is what keeps the bets timid this Monday. Key support is placed at the 21-day moving average (1.3558)," says Ipek Ozkardeskaya at Swissquote Bank.