Eur/usd - page 128
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EUR/USD extends losses on Yellen comments
The euro fell against the dollar on Wednesday after Federal Reserve Chari Janet Yellen said a day earlier that interest rates could rise sooner rather than later if the labor market improves, which bolstered the greenback.
In U.S. trading, EUR/USD was down 0.27% at 1.3531, up from a session low of 1.3525 and off a high of 1.3572.
The pair was likely to find support at 1.3513, the low from June 16, and resistance at 1.3640, Monday's high.
Yellen told lawmakers in a Tuesday hearing that interest rates could rise sooner rather than later if the labor market continues to improve, especially given her observations that small-cap, biotech and other momentum stock valuations appear "stretched" these days.
Yellen was set to appear before the House of Representatives later Wednesday, though the dollar already priced in Fed expectations for rates to rise sooner if the economy improves or remain on hold if slackness persists, while stimulus programs should wrap up around October.
The dollar also firmed on the news that U.S. wholesale prices rose more than expected in June.
The U.S. producer price index rose by 0.4% in June from May, according to the U.S. Bureau of Labor Statistics, beating market calls for a 0.2% uptick.
Core producers prices rose 0.2%, in line with market expectations.
Elsewhere, the Federal Reserve reported that U.S. industrial output rose 0.2% in June, missing consensus forecasts for a 0.4% reading, which capped the dollar's gains.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.20% at 0.7898, and down against the yen, with EUR/JPY down 0.29% at 137.57.
On Thursday, the euro zone is to release data on consumer prices.
The U.S. to publish reports on initial jobless claims, housing starts, building permits, and the Philly Fed manufacturing index.
source
Yes actually 1.3520 is a very strong support let's see if it will hold
Can The Euro Break 1.35?
Will Euro Break 1.35?
The 1.35 level is very significant for the EUR/USD. Despite numerous attempts to test this level over the past 8 months, EUR/USD only closed below 1.35 on one occasion and that was on January 31. If we look back all the way back to September, we see even more instances where the currency pair tested and failed to break 1.35 in a meaningful way. The only time that a sustained break occurred was after the European Central Bank surprised with a 25bp rate cut in November and while the sell-off extended to 1.33, less than 2 weeks later, EUR/USD was trading back above 1.35. So now that we are once again within 30 pips of this key level, many traders are wondering if 1.35 will hold. From a technical perspective, 1.35 is less significant than the February-3rd low of 1.3477. However taking a look at the chart below, Wednesday’s decline has taken EUR/USD below trend line support. If the pair breaks its 2014 low of 1.3477, the next stop could be the November low of 1.3295. On a fundamental basis disappointing Eurozone data and a faster decline in European yields drove the sell-off in EUR/USD. The region’s trade surplus rose to 15.3B from 15.2B in May, which was less than expected and yesterday, the Eurozone ZEW survey dropped to its lowest level in 11 months. While Treasury yields declined Wednesday, the 1.6bp drop in 10-year yields paled in comparison to the 2.1bp drop in French yields, 2.7bp drop in Italian yields and 5bp decline in Spanish yields. However it is important to recognize that there are also fundamental reasons why the euro refuses to break 1.35. The Eurozone has a massive current account surplus, U.S. yields are still in a downtrend and the currency is benefitting from reserve diversification. Therefore without a significant rally in U.S. yields or a strong signal from the ECB that further easing is imminent a move below 1.35 could be fake-out instead of a breakout. Eventually 1.35 will give way but that may not happen until the fall when the Fed ends Quantitative Easing and shares its exit strategy.
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EURUSD tried to rally during yesterday session, but as you can see gave back about half of the gains consolidating within a tight range of 1.3590 support and1.3650 resistance. Ultimately, this is a market that looks far too choppy to be trading.
we will see little regain on eur/usd this morning after the eur cpi
EURUSD fell hard during yesterday session hitting a daily support at 1.3525 and still remains above the 1.35 handle. However a break below the 1.3476 support zone, could throw the EURUSD down to the 1.33 level.
honestly i dont think price will break under the support levels
honestly i dont think price will break under the support levels
for sure we are waiting for up trend today
EURUSD went back and forth during yesterday session closing near the open forming a doji and showing that the 1.3426 up to 1.3525 is a strong supportive zone. With this in mind, the market may be ready to bounce from here, and head back towards the top of the consolidation area at the 1.37 handle.
Eurozone Current Account Data Expected
Eurozone current account figures are expected to be released on Friday, a day light on economic data.
At 4 am ET, the European Central Bank is scheduled to release its current account data for May. In April, the current account surplus stood at EUR 21.5 billion.
At 3 am ET, the Hungarian Central Statistical office will release its average gross wages data for May. In April, wages had risen 4.1 percent year-over-year.
Statistics Netherlands is due to release its consumer confidence report for July at 3:30 am ET. In June, the consumer confidence index was at -2.
At 9 am ET, the National Bank of Belgium is expected to release its consumer confidence report for July. In June, the consumer confidence index was at -7.
European Central Bank's Weidmann is due to speak in Madrid at 6:30 am ET.
At 9:30 am ET, European Union and US negotiators are expected to hold a press briefing after trade talks.
Euro zone current account 19.5B vs. 23.0B forecast
The euro zone’s current account fell unexpectedly last month, industry data showed on Friday.
In a report, European Central Bank said that Euro zone current account fell to a seasonally adjusted 19.5B, from 21.6B in the preceding month whose figure was revised up from 21.5B.
Analysts had expected Euro zone current account to rise to 23.0B last month.