Category: EUR/USD Daily

EUR/USD falls below 1.24 on fresh ECB QE talk



Tension towards the highly anticipated Fed decision made way for some nerve wrecking news from the old continent: a fresh statement about Quantitative Easing in the euro-zone hits the euro.

EUR/USD is falling through 1.24. The low so far is 1.2385. Support awaits at 1.2360, followed by 1.2280. Resistance is at 1.2450 and 1.25.

News: Fed removes “considerable time” but calls for patience – USD eventually slides

More: Join a live coverage of the Fed decision from 18:45 GMT

European Central Bank member Benoit Coeure says that there is a broad consensus for doing more. Broad consensus is enough – a unanimous decision is not a prerequisite as we’ve learned from Draghi last time.

More: he also talked about the exchange rate:

the logical market outcome” of these trends is that the euro’s exchange rate should adjust further

The ECB wants a weaker euro. Will it get it soon?

Coeure also said that there is no real question of whether action is needed, but what exact time of action it shall be. While for many, including in this neck of the woods, QE is clear, a clear reminder, coming on top of high tension in the markets and thin trading volume towards the holidays takes its toll.

Earlier in the day, we had a confirmation of rock bottom inflation in the euro-zone: headline inflation stands at 0.3%, far from the ECB’s 2% mandate. Core inflation doesn’t help much with only 0.7%. In the US, headline inflation fell to 1.3% on oil prices, but US core inflation is at 1.7%.

It seems that the ECB is set to announce QE on its January 22nd meeting.

In the US, we have a very interesting Fed decision later this evening.

The big event of the day is the Fed decision in the US. See the preview: FOMC quick preview: what’s more important: employment or inflation? Currencies to trade in both cases

Here is how the move looks on the chart:

Coeure talks about quantitative easing in the euro zone and weighs on the euro December 17 2014

5 reasons for the surge of EUR/USD

5 reasons for the surge of EUR/USD

EUR/USD is on the rise, trading at 1.2540, extending gains. Up to now, EUR/USD has been relatively stable in the global storm, especially the collapse of oil prices and the consequent plunge of the Russian ruble. It seemed to be in a wait and see mode: for ECB action regarding QE and the Fed decision

Sell EUR/USD Targeting 1.16-1.20 – Westpac Top Trades For Q1 ’15:

Sell EUR/USD Targeting 1.16-1.20 – Westpac Top Trades For Q1 ’15:

EUR/USD has shown a lot of stability despite the bearish forecasts and falling inflation. The team in Westpac sees a significant leg lower in Q1 2015, and sets clear targets: Here is their view, courtesy of eFXnews: Westpac is out with its top FX trades for Q1 2015 where selling EUR/USD is one of the

EUR/USD Bull Wedge; Time For USD Pain Trade – Credit Suisse

EUR/USD Bull Wedge; Time For USD Pain Trade – Credit Suisse

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EUR/USD Dec. 11 – On high ground ahead of all-important TLTRO

EUR/USD Dec. 11 – On high ground ahead of all-important TLTRO

EUR/USD is trading close to the highs of the month so far, riding on the weakness of the US dollar. Another wave of greenback sell off puts the pair within reach of 1.25. Can it make the break? A lot depends on the results of the TLTRO, which could determine the QE question in Europe. Apart from

EUR/USD Dec. 10 – In perfect range after dollar sell-off

EUR/USD Dec. 10 – In perfect range after dollar sell-off

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EUR/USD Dec. 9 – Recovering to resistance as Greece subsided for now – JOLTS awaited

EUR/USD Dec. 9 – Recovering to resistance as Greece subsided for now – JOLTS awaited

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EUR/USD Dec. 8 – The only way is down – euro worries, NFP echoes

EUR/USD Dec. 8 – The only way is down – euro worries, NFP echoes

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EUR/USD Dec. 5 – In tight range ahead of NFP, still digesting Draghi

EUR/USD Dec. 5 – In tight range ahead of NFP, still digesting Draghi

EUR/USD is trading in a tight and well defined range between 1.2360 and 1.24, ahead of the monthly release of the US jobs report. Draghi did not deliver this time and sent a message that the ECB needs more time before it decides on QE, but it seems clear he supports it. So while the pair is

EUR/USD Dec. 4 – Under pressure ahead of all important ECB meeting

EUR/USD Dec. 4 – Under pressure ahead of all important ECB meeting

EUR/USD is trading just above 1.23 after dipping below this round level earlier. Markets are getting jittery ahead of the ECB meeting. Will Draghi announce QE? What is the level in which it is priced in? While the focus is on Europe, we have a stronger dollar across the board towards the NFP, and we have