As we enter Wednesday's NA session, Scotiabank's Chief FOREX Strategists Shaun Osborne and Eric Theoret observe that the Euro (EUR) is weak, down 0.5% vs the US Dollar (USD), and underperforming the G10 currencies.
The announcement of the Dutch no-confidence vote has caused the EUR to underperform.
The announcement of a no confidence vote in the Netherlands has market investors thinking about political unpredictability, which exacerbates their already worries about France. There have been no data releases, and the ECB's minutes on Thursday and Rehn's anticipated speech represent the short-term risk.
"The RSI recently broke below the dividing threshold at 50, and it is still near neutral. However, the recent local low is noteworthy and draws attention to the low from August 1 at about 1.14. Looking to a short-term range bound between 1.1550 support and 1.1650 resistance, we are still neutral for the time being.
The announcement of the Dutch no-confidence vote has caused the EUR to underperform.
The announcement of a no confidence vote in the Netherlands has market investors thinking about political unpredictability, which exacerbates their already worries about France. There have been no data releases, and the ECB's minutes on Thursday and Rehn's anticipated speech represent the short-term risk.
"The RSI recently broke below the dividing threshold at 50, and it is still near neutral. However, the recent local low is noteworthy and draws attention to the low from August 1 at about 1.14. Looking to a short-term range bound between 1.1550 support and 1.1650 resistance, we are still neutral for the time being.
