Eur/usd - page 176
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Euro lower on ECB corporate bond buying report
The euro slipped against the dollar and the yen on Tuesday following reports that the European Central Bank is considering corporate bond purchases and could decide on the matter as soon as December.
EUR/USD was down 0.28% to 1.2763, having retreated from session highs of 1.2840.
The drop in the euro came after Reuters reported that the ECB is examining plans to purchase bonds issued by companies, or corporate debt, to help shore up growth and boost slowing inflation in the euro area.
The report said the bank could activate the new stimulus plan as soon as December and start bond purchases by early next year.
The ECB began purchasing covered bonds on Monday in a bid to increase liquidity in the region.
The euro gained ground against the dollar earlier in the session after third quarter growth data from China added to concerns over the outlook for the global economy.
China’s economy grew at an annual rate of 7.3% in the three months to September, slightly higher than the 7.2% forecast by economists, but slowing from 7.5% in the second quarter.
It was the slowest rate of growth since the first quarter of 2009, in the midst of the global financial crisis.
The weak data also added to concerns that weaker global growth could act as a drag on the U.S. economy, dampening dollar demand.
The data came a day after Germany’s Bundesbank said the country’s economy barely grew in the third quarter. The Deutsch Bundesbank said that while the euro zone’s largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.
The single currency fell to session lows against the yen, with EUR/JPY down 0.39% to 136.39 and was also weaker against sterling, with EUR/GBP slipping 0.18% to 0.7904.
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price is at a strong resistance level 1.2790 it will decide where the price will go a break above 1.2790 will push the price higher a break under will pull the price back to 1.2700.
Thank you for the useful information.
well we have a decided range 1.2725 - 1.2840 price keep bouncing up and down so buy if the price start to rebound again from the support
Euro on defensive after ECB bond buy report
The euro flirted with one-week lows on Wednesday following a Reuters report that the European Central Bank is considering buying corporate bonds, while recovery in risk appetite underpinned the dollar against the yen.
The euro traded at $1.2710, near its lowest level since Thursday last week after having fallen 0.7 percent on Tuesday.
Several sources told Reuters the ECB is considering buying corporate bonds on the secondary market and may make a final decision as soon as December with a view to begin buying the bonds early next year.
The move, if realized, would expand the private-sector asset-buying program the ECB began on Monday, which is aimed at fostering lending to businesses in hopes of spurring growth.
"It seems like quantitative easing by the ECB is within sight," said a trader at a Japanese bank.
The prospects of fresh easing by the ECB bring back the monetary policy divergence between Europe and the U.S. under spotlight, helping to underpin the dollar.
The dollar had a three-month rally until September on the view that higher U.S. interest rates down the road will attract funds from Europe and Japan, where rates are likely to stay low due to stimulus by their respective central banks.
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In the short-term, EURUSD is at a key potential inflection point: at the bottom of its channel after at least two waves up. A break below 1.2700 could signal the fulfillment of the bearish flag pattern and bring about extension to 1.2500. On the flip-side, expect plenty of short-term buying here as traders buy at the bottom of its flag channel, betting on a return to 1.29.
Euro Fluctuates as Investors Weigh Prospects for ECB Bond Buying
The euro fluctuated against the dollar as investors weighed the prospects of additional monetary easing from the European Central Bank.
The 18-nation shared currency was little changed against the yen after ECB Governing Council member Luc Coene said the institution had “no concrete proposal” to buy corporate bonds. A report by Reuters that the institution would buy the securities helped send the euro tumbling by the most in a week versus the greenback yesterday. It also fell yesterday after billionaire hedge-fund manager David Tepper said investors should sell the currency because of the central bank’s policies.
The euro was little changed at $1.2717 as of 8:33 a.m. London time after swinging between a 0.1 percent drop and 0.2 percent gain. It fell 0.7 percent yesterday, the biggest decline since Oct. 14. The shared currency was at 135.92 yen. The dollar weakened 0.1 percent to 106.87 yen.
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price is at a strong resistance level 1.2790 it will decide where the price will go a break above 1.2790 will push the price higher a break under will pull the price back to 1.2700.
And today the eurusd got to 1.2650 and I guess it will move to the 1.2500 soon.
The dollar has been on the rise against against almost all of its peers, except the JPY, AUD and NZD against which has been stable.
ECB consider to buy corporate bonds and debts causing a major fall on the euro. I'll be looking for a short position under the support 1.2620
EURUSD pair fell during the course of the day on yesterday session, sending this pair looking for the 1.2650 handle. It appears that the EURUSD is ready to go lower, and at this point time any rally should be treated with suspicion. With that in mind, the pair can drop to the next key level at 1.2500 or even to the 1.2050 level based upon longer-term charts.