“Dynamics might lead to a ranging market, which is why I anticipate resistance near the 1.29/1.2950 area, and decline to 1.2800”, said Fan Yang, currency analyst at CMS Forex. According to him if EUR/USD breaks above 1.2950, “it is very likely that it has turned bullish”.

The Dollar finished the week mostly lower across the board and managed to rise only against the Pound, that was the worst performer among majors. Against currencies tied to commodities, Greenback posted the lowest weekly close since early August as market sentiment improved over the week.

“The sense of relief was tangible as incoming data painted a slightly brighter picture than in previous weeks. The strong ISM figures in particular confirm that the risk of a really hard landing in the US is relatively small”, said analyst at Danske Bank. According to them the evidence show a broader-based upswing in Europe and PMI data indicated that recent downturn in China manufacturing sector is over.

Fri, Sep 3 2010, 20:28 GMT
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