EUR/USD is likely to trend sideways - Commerzbank

[Joshua_fx]

Even though the EBA published its stress tests result, showing that only 8 of 90 banks failed the tests giving the Euro some relief, "the Euro zone politicians are still struggling for a solution to the sovereign debt crisis after the situation escalated last week", said Antje Praefck, analyst at Commerzbank.

Meanwhile, "in the USA, the debate over the raising of the debt ceiling is becoming more and more urgent. There is a chance of a US default at the beginning of August if the government and opposition cannot come to an agreement. The rating agency Moody’s has therefore placed the country's rating under review for a possible downgrade," said Praefck.

"Against this background, general uncertainty in the currency markets remains high. Depending on the news flow, sometimes USD and sometimes EUR will come under greater pressure… All this points to choppy, volatile sideways trading in EUR-USD over the coming days", added Antje Praefck.

 

[lcchong76]

I also think EUR/USD will go sideways for a period

 

[market_bull]

Even though the EBA published its stress tests result, showing that only 8 of 90 banks failed the tests giving the Euro some relief, "the Euro zone politicians are still struggling for a solution to the sovereign debt crisis after the situation escalated last week", said Antje Praefck, analyst at Commerzbank.

Meanwhile, "in the USA, the debate over the raising of the debt ceiling is becoming more and more urgent. There is a chance of a US default at the beginning of August if the government and opposition cannot come to an agreement. The rating agency Moody’s has therefore placed the country's rating under review for a possible downgrade," said Praefck.

"Against this background, general uncertainty in the currency markets remains high. Depending on the news flow, sometimes USD and sometimes EUR will come under greater pressure… All this points to choppy, volatile sideways trading in EUR-USD over the coming days", added Antje Praefck.

Source: FXCC

In all complete honesty, every day the dollar and euro continue to exist, I'm utterly floored - because the amount of B.S. and straight-up "rabbits-from-the-ar$e" the system has done to keep this fiat currency going is just outrageous, in my opinion.

 

[L0ck_St0cK_B0LL0cks]

There is still the Greece saga going on while Italy is on the verge of needing a bailout. If the euro were to range it would be on the basis of the value being already factored in and participants waiting for more data. If I had a large pile of money sitting in euros, I wouldn't be very happy about it. For this reason I see further downside to the euro. The situation of the USA debt ceiling isn't a driving factor and will certainly be resolved. The eurozone isn't as fortunate in a resolution. There are just too many unknowns with wiggle room getting tighter.