Eur/usd - page 152
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
EURUSD rose slightly during the Wednesday session, but found sellers above again on the 10 day moving average. All eyes will be on the interest rate statement coming out of the ECB today, looking for clues of further QE out of Brussels. The 1.32 level should continue as a key resistance and 1.31 should be a key support to pay attention today.
ECB looking at launching ABS program worth €500bn
Reuters with the scoop that’s scuppered the euro
Sources say that Draghi will announce the ABS program at today’s meeting
Program will have a 3 year duration comprising of ABS and covered bond purchases and could start buying this year
20 pips was what that headline was worth as we hit 1.3120 as Reuters cite “people familiar with discussions”
It looks like we’ve been tipped the nod but nothing will be confirmed until the announcement or more probably, the presser.
Euro drops below $1.31 as ECB cuts benchmark, deposit rates
Euro drops below $1.31 as ECB cuts benchmark, deposit rates
ECB cuts key interest rates by 0.1% percentage point
The European Central Bank cut three key interest rates on Thursday by 0.1% percentage point. The refinancing rate was lowered to 0.05%, the marginal lending rate to 0.3% and the rate on the deposit facility to negative 0.2%. The euro EURUSD, -0.93% tumbled on the news. The ECB made no comment on new quantitative-easing measures. The spotlight now turns to ECB President Mario Draghi, who is scheduled to hold his regular news conference at 8:30 a.m. Eastern.
Euro Drops Below $1.30 as ECB Announces Rate Cuts, ABS Purchases
The euro dropped below $1.30 for the first time since July 2013 after the European Central Bank unexpectedly cut its main refinancing rate to a record 0.05 percent and introduced additional stimulus.
The shared currency fell the most versus the greenback since October after officials lowered the deposit rate to minus 0.2 percent, also the least on record. The euro extended its decline after ECB President Mario Draghi said the central bank will purchase “a broad portfolio” of asset-backed securities starting next month. The dollar also gained as a gauge of U.S. service businesses in August unexpectedly climbed.
“Draghi has strengthened his dovish rhetoric with action,” said Salman Ahmed, a global strategist at Lombard Odier Investment Managers in London. There were “expectations that movement would be made on the ABS program, but this goes a step further. What the ECB did today strengthens their credibility. We expect sustained euro weakness.”
The euro dropped 1.1 percent to $1.3009 at 10:08 a.m. New York time after sliding to $1.2996, the lowest since July 15, 2013. It fell 0.9 percent to 136.58 yen, and fell as much as 0.2 percent to 1.20449 Swiss francs, the lowest since November 2012.
The Japanese currency declined 0.2 percent to 104.98 per dollar after touching 105.31 yen yesterday, the weakest level since Jan. 10.
read more
The market responded negatively to ECB decision to cut the interest rate from 0.15% to 0.05 , we have 200 pip fall on the EUR/USD in 1 day.
German Seasonally adjusted production in July 2014 up 1.9% on the previous month
In July 2014, production in industry was up by 1.9% from the previous month on a price, seasonally and working day adjusted basis according to provisional data of the Federal Statistical Office (Destatis). In June 2014, an increased a revised 0.4% from May 2014. Production in industry excluding energy and construction grew by 2.6%. Within the industry was recorded with the manufacturers of capital goods by 5.0%, the highest growth. The production of intermediate goods (+0.8%) and the production of consumer goods (+0.1%) increased. Energy production fell by 3.7% in July 2014, while the production in construction increased by 1.7%.
EURUSD fell hard during yesterday session as the European Central Bank surprised cutting all three interest rates and announcing a bond buying programme. The market looks as if it is going to continue selling, as the length of the candle is pretty drastic 227 pips the worst fall since the start of the Year. On top of that, we broke below the 1.30 level and the market is going to go to the next significant support level, the 1.28 handle.
thanks for the news and have a nice weekend
EUR/USD looks like it will bottom next week around 1.278.