Bank of Italy sees Q1 loans continuing to offer stricter terms.
EUR/USD moves higher through 100 hour moving average
The pair is up over 100 pips in the last four hours fueled by higher stocks and manufacturing and CPI readings which came in as expected. After testing trend line support at session lows, the pair has seen strong buying and has moved through the 100 hour moving average which currently comes in at 1.3131. In recent trading it seems that the pair has lost some steam in which case we look back towards the 38.2% line as the first downward target. If momentum continues, 1.32261 is the significant level upward.
Eurozone CPI Estimate 2.7%; unchanged as expected.
UK Manufacturing PMI (Jan) 52.1 vs 50.0 expectation (49.6 prior).
ECB Comments
- Banks tightened credit standards in the fourth quarter.
- Banks expect further tightening in Q1, at a slower pace.
- Banks cite weak economy.
- Tightening is widespread with the exception of Germany.
- Credit demand declined in the fourth quarter at a slower pace than in Q3.
- Banks access to funding eased slightly in Q4.
- ECB liquidity may ease funding access further in Q1.


