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27 Mar 2014
EUR/USD testing 3-week lows
FXStreet (Edinburgh) - The EUR/USD is prolonging its weekly descent on Thursday, challenging the area of 1.3740, or 3-week lows so far.
EUR/USD hurt by ECB easing rumours
Nothing new around the euro today. On the contrary, seems to be more of the same that is not giving up on the EUR: in light next week’s ECB monetary policy meeting, rumours continue to build up around the likeliness of further monetary easing by the European Central Bank, with market chatter around some sort of QE-style package or even the implementation of negative rates. “A further inflation disappointment in the months ahead will make it difficult for the ECB to revise its short-term inflation projections downwards, keep its long-term inflation projections the same, and not risk un-anchoring inflation expectations if it remains on hold. However, we argue that the FX market is not positioned for further ECB policy easing”, commented analysts at Bof A Merrill Lynch Global Research.
EUR/USD levels to watch
As of writing the pair is losing 0.20% en 1.3752 and a breakdown of 1.3722 (50% of 1.3477-1.3967) would target 1.3720 (low Mar.6) en route to 1.3707 (low Mar.5). On the flip side, the initial hurdle aligns at 1.3825 (21-d MA) followed by 1.3827 (high Mar.26) and finally 1.3848 (high Mar.25).
EUR/USD hurt by ECB easing rumours
Nothing new around the euro today. On the contrary, seems to be more of the same that is not giving up on the EUR: in light next week’s ECB monetary policy meeting, rumours continue to build up around the likeliness of further monetary easing by the European Central Bank, with market chatter around some sort of QE-style package or even the implementation of negative rates. “A further inflation disappointment in the months ahead will make it difficult for the ECB to revise its short-term inflation projections downwards, keep its long-term inflation projections the same, and not risk un-anchoring inflation expectations if it remains on hold. However, we argue that the FX market is not positioned for further ECB policy easing”, commented analysts at Bof A Merrill Lynch Global Research.
EUR/USD levels to watch
As of writing the pair is losing 0.20% en 1.3752 and a breakdown of 1.3722 (50% of 1.3477-1.3967) would target 1.3720 (low Mar.6) en route to 1.3707 (low Mar.5). On the flip side, the initial hurdle aligns at 1.3825 (21-d MA) followed by 1.3827 (high Mar.26) and finally 1.3848 (high Mar.25).