EUR Trading Outlook (26-06-2014)

EUR/USD opened NYC 1.3604, “unch” vs last night’s close, O/N range 1.3601/19. Profit-taking in EUR/GBP pulled EUR higher overnight but ranges remained tight. US GDP data was not expected to generate much of a stir but the massive downgrade TO -2.9% sparked a stop loss jag in EUR/USD. GDP to 1.3651 paid and bid. US 10-Yr yields dropped 5bp, -1.0% US durable goods vs “0” f/c aiding and abetting. Non-defence ex- aircraft at +0.7% however was a beat (f/c +0.5%) and there were small upgrades to previous. Furthermore health care spending impacted the numbers. Better than f/c Markit flash composite & Svcs PMIs helped turn bond yields up and by the close were just 1.3bp below the open. EUR/USD closed 1.3629.