EUR/USD touch easier in early European trade

EUR/USD is a little easier in early European trade, presently at 1.3965. The improved USD sentiment we saw Friday seems to be lingering. The unexpected improvement in U.S. non-farm payrolls Friday is leading some to believe it won’t be too long before we see official US rates headed higher. At the same time, there is a feeling in certain quarters that the yield back up could prompt the Fed to quit buying treasuries if it is seen to be rooted in economic optimism. The worrying situation in the Baltics will also be weighing on EUR/USD. Technical support is at present 1.3965 and below there at 1.3925/30, resistance up at 1.4000/10.

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