Eur/usd - page 336
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
Euro breaks to the downside as the post-NFP lows break
Stops hit in quick euro move lowerAs European traders headed to the pub, a fresh round of selling sent the euro to a session low at 1.1174.
Friday's low at 1.1198 held an earlier selloff at that level and bounced 20 pips but on the second try, as stocks rallied further, it broke through.
For the bulls, Mizuho is out with a research note on the euro and says it puts 'fair value' in the pair at 1.20 compared to the 1.08 consensus estimate of analysts. In Q3, Mizuho was the most accurate euro forecaster, according to Bloomberg.
"For the euro to fall below $1.08, there has to be something that challenges the integration of the common currency," said Daisuke Karakama, chief markets economist at Mizuho. "The euro is underpinned by real demand as the euro zone is, and will likely remain, the world's largest current-account surplus area."
The latest round of EUR/USD weakness is part of a broader bid in the US dollar that's also putting pressure on cable.
EUR/USD rebounded from 1.1230 and is facing support level 1.1160, between both resistance and support the market looks undecided I will wait for a break to take a decision.
EUR/USD: Greenback Books Moderate Gains, Settles Below $1.1200
The EUR/USD pair was trading slightly below the flatline on Monday as the euro currency gave up its early morning gains, despite the US macro calendar unveiling downbeat services sector data, namely the Institute for Supply Management's (ISM) non-manufacturing composite and the services PMI by Markit.
Meanwhile, the pair struggled for direction amid echoes of the unexpectedly weaker non-farm payrolls seen Friday, however St Louis Federal Reserve (Fed) President James Bullard called the fresh report "just one number", pointing to the previous solid labor market development.
"The US jobs data was a disappointment and postpones expectations of a lift-off by the end of this year which is not dollar positive," Nomura currency strategist Yujiro Goto noticed. "At the same time, we expect the other major central banks like the Bank of Japan and the ECB to remain dovish."
The euro edged 0.21% lower to trade at $1.1183 against the buck, falling from an intraday high of $1.1289, while the US dollar index slipped 0.03% to 96.00 points.
read more
Germany factory orders August mm -1.8% vs +0.5% exp
Ouch. Not a good reading for the German economy
Euro shrugging it off for the moment but still looks a little undermined anyhow
EURUSD 1.1181 EURGBP 0.7374 EURJPY 134.50
EUR/USD: Euro Crosses $1.12 Mark
The shared European currency continues choppy trading on Tuesday, swinging between mild gains and losses, while managing to pass the $1.12 handle after the market open in Europe.
The latest German data, factory orders for August, recorded a negative development, and more than markets had initially anticipated.
Industrial orders in the euro area's number one economic powerhouse fell 1.8% in the reported period, measured on a monthly and seasonally adjusted basis, while analysts had expected the reading to post a 0.5% increase. In the prior month, the revised gauge declined 2.2%.
The euro was seen virtually flat, 0.17% higher at $1.1204 on Tuesday.
"The euro attempted another run higher on Monday but EUR/USD fell short of 1.13 as euro zone services PMI data missed expectations, falling more than expected over the month. The weakness builds on our discussion yesterday of the euro's failure to sustain an advantage despite two particularly weak moments for the US dollar; i.e. no September Fed rate hike and the weak US employment report," Jasper Lawler from CMC Markets wrote on Tuesday.
read more
Yesterday the EURUSD tried to rally fell but found yet gain enough selling pressure to reverse and close in the red near the low of the day with a narrow range, creating an inside day.
The currency closed below the 10 and 50-day moving averages signaling that the bulls are losing control in the short-term although it continues in a range bound move around the two moving averages.
The key levels to watch are 1.1460 (Resistance), 1.1237 (resistance) and 1.1097 (support).
Euro gains ground against softer dollar
The euro pushed higher against the weaker dollar on Tuesday as diminished expectations for a rate hike by the Federal Reserve this year pressured the greenback lower.
EUR/USD rose 0.46% to 1.1237 from 1.1186 late Monday.
The dollar remained on the back foot after Friday’s unexpectedly weak U.S. jobs report prompted investors to abandon expectations for a rate hike by the Fed before the end of 2015.
The Labor Department reported that the U.S. economy added just 142,000 jobs last month, well below expectations of the 201,000 expected by economists.
August’s reading was revised down to 135,000, from the initial reported figure of 173,000.
The report underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the U.S. central bank to early 2016.
Data on Tuesday showed that the U.S. trade deficit widened by the most in five months in August as exports dropped.
read more
EUR/USD a break over yesterday's highest price resistance levels will push the price towards the next resistance level 1.1370.
USD depreciated by 0.73% to 1.1271 EUR/USD. The dollar index DXY decreased 0.61% to 95.52.
EUR/USD surges amid widening U.S. deficit, lower IMF growth forecast
EUR/USD surged more than 0.75%, amid downbeat forecasts from the International Monetary Fund on global economic growth over the next year and a widening of the U.S. trade deficit in August.
The currency pair wavered between a low of 1.1173 and a high of 1.1280, before settling at 1.1272, up 0.0085 or 0.76% on the session. The euro has now closed above 1.12 against the dollar three times in the last four sessions. In addition, the euro has also closed higher against its American in nine of the last 12 sessions since suffering a four-day losing streak in late-September. Over the last month of trading, the euro is up by more than 1% against the dollar.
EUR/USD likely gained support at 1.1086, the low from Sept. 3 and was met with resistance at 1.11460, the high from Sept. 18.
On Tuesday, the International Monetary Fund, a Washington-based organization mandated to ensure the stability of the international monetary system, slashed its global economic growth forecast for the second time in 2015. Citing weakness in China and soft commodity prices, the IMF estimated that the world's economy will grow at 3.1% this year and 3.6% in 2016. Both estimates are 0.2% below the IMF's July forecasts. In April, the IMF downgraded its 2015 forecast by 0.4% and its growth forecast for 2016 by 0.2%.
When projecting short-term growth in the U.S., the IMF estimates that its economy will grow 2.6% this year and by 2.8% in 2016. The IMF also expects growth in the euro zone to increase by 1.5% and 1.6% in 2015 and 2016 respectively. In Japan, the organization projects economic growth of 0.6% this year and a full 1.0% in 2016. The IMF also forecasts a sharp deceleration in growth among emerging markets, as commodity prices continue to plummet. In its latest forecast, the IMF cut growth in emerging markets to 4% for 2015.
read more