Tuesday, 5 May 2015

XE Market Analysis: Europe - May 06, 2015

EUR-USD recovered above 1.1200 on route to a five-day peak at 1.1242. The 200-day moving average at 1.1264 and the May-1 two-month peak at 1.1290 provide upside markers. Greek uncertainties persist, but broad dollar weakness is underpinning EUR-USD following yesterday's big trade deficit miss, which risks a negative revision in Q1 GDP data. The dollar's yield advantage over the euro has narrowed to the 167 bp at the 10-year maturity comparison. USD-JPY slumped back to the 120.00 area after clocking a three-week peak at 120.50 yesterday.



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