Category: EUR/USD Daily

EUR/USD Oct. 22 – Loses 1.27 on ECB speculation ahead of US CPI



EUR/USD is under pressure and is trading under the 1.27 handle, as speculation about the ECB buying corporate bonds mounts. While there is no decision on the matter, it is clear that Draghi and co. are looking for ways to print more euros. In addition, the pair is pressured by a strengthening dollar, one week ahead of the FOMC meeting. Today we get US inflation numbers which carry low expectations.

Here’s a quick update on technicals, fundamentals and sentiment moving the pair.

  • Asian session: The pair traded above 1.27, before falling in the European session.
  • Current range: 1.2660 to 1.27.

Further levels in both directions:

EURUSD October 22 2014 technical chart fundamental analysis and outlook for currency trading

  • Below:  1.2660, 1.26, 1.2570 and 1.25.
  • Above: 1.27, 1.2750, 1.28, 1.2850, 1.2920 and 1.30 and 1.31, which is targeted by one bank.
  • 1.2750 is key resistance.
  • 1.2660 is the limelight.

EUR/USD Fundamentals

  • 12:30 US CPI, exp. 0%, core CPI exp. +0.2%.

* All times are GMT.

For more events and lines, see the Euro to dollar forecast.

EUR/USD Sentiment

  • ECB to buy corporate bonds?: A report hit the wires on Tuesday saying that the ECB is due to announce buying corporate bonds in December and begin buying them in Q1. While a denial came later on, ECB member Coene basically said it is an option. Buying corporate bonds expands the potential assets that the ECB can buy, thus allowing it to print more euros and faster. This is the main weight on the euro.
  • To end QE or not to end QE: What seemed like a done deal is not necessarily so. The usually optimistic and bullish James Bullard suggested that the Fed would not end its QE program in its upcoming meeting but rather continue it due to worries about Europe. This hit the US dollar. Later on, other FOMC members, some of them quite dovish, did reaffirm the end of QE. Markets will probably be nervous towards the October 29th meeting. Inflation numbers will likely have an impact on this decision.
  • Deal between Germany and France: Reports in various papers say that the two core countries are negotiating a pact in which Germany would approve the French deficit in return for very specific conditions. This eases the tensions.
  • Stress tests coming up: The next big event for the euro-zone is the release of the stress test results for banks on Sunday. While the Bank makes an effort to keep it secret, we can expect some leaks. Will some banks fail the tests? This is needed for credibility, but could also cause worries.

In our latest podcast, talk about: Questions for every trader, crashing oil, state of the UK and global gloom.

Download it directly here.

Subscribe to our podcast on iTunes.

EUR/USD Oct. 21 – Hits high resistance as dollar sells off

EUR/USD Oct. 21 – Hits high resistance as dollar sells off

EUR/USD is trading on high ground above 1.28 and below the top resistance line of 1.2850. The pair is mostly moving on weakness in the US dollar, which continues to slide despite some hawkish comments from members of the Fed. US data begins coming today with existing home sales. In Europe, the same old worries about growth

Why We Remain Euro Bears; Risk & JPY Next Move – CIBC

Why We Remain Euro Bears; Risk & JPY Next Move – CIBC

EUR/USD had two weeks of rises, in a high volatility environment. Can it continue rising? The team at CIBC remains bearish on the euro. They also offer their opinions on risk and the Japanese yen. Here is their view, courtesy of eFXnews: The following are the weekly outlooks for the EUR and JPY as provided by

EURUSD Higher Highs and Trading Above W1 Support – Looking to Buy

EURUSD Higher Highs and Trading Above W1 Support – Looking to Buy

EURUSD has suffered quite heavy losses in the last few trading months – thanks to the strength gained in the USD. We all know that these trends don’t last forever and the markets can shift from bearish to bullish sentiments overnight. The EURUSD downtrend looks like as it has run out of steam as the

EUR/USD Oct. 16 – Sliding after the mad shoot higher

EUR/USD Oct. 16 – Sliding after the mad shoot higher

EUR/USD is trading in the high range of 1.2750 to 1.28 after an extreme market storm. The weak US retail sales sparked a dollar and stock sell off, sending euro/dollar 200 pips higher before sliding 100 pips and stabilizing only after a long time. The blessed volatility provides opportunities and also risks. Will we see another storm today?

EUR/USD Oct. 15 – About to get busy in the lower range

EUR/USD Oct. 15 – About to get busy in the lower range

EUR/USD is trading in a limited range just under resistance at 1.2660, despite a lot going on in the markets. It managed to stabilize after the falls seen yesterday. Fears of a German recession worsened with yesterday’s data and forecast downgrade. In his first speech today, Draghi did not talk about monetary policy but he speaks

EUR/USD Oct. 14 – Sits on higher ground as German strength is tested

EUR/USD Oct. 14 – Sits on higher ground as German strength is tested

EUR/USD is trading on high ground above 1.27, riding on a fresh wave of dollar weakness. The rout in stock markets is boosting the yen but not the greenback in this round. The euro manages to ignore worries coming from all over the world about the euro-zone economic situation. A slip into recession seems imminent. Here’s

EUR/USD forecasts cut by Goldman Sachs

EUR/USD forecasts cut by Goldman Sachs

Fears of German recession are not the only reason behind lower forecasts for EUR/USD. The team at Goldman Sachs lists several reasons why euro/dollar should further fall and update their 3, 6 and 12 month forecasts to the downside. Here is their view, courtesy of eFXnews: Goldman Sachs cuts its EUR/USD forecast and now expects

EUR/USD Oct. 10 – Slides to support on Draghi, better US data

EUR/USD Oct. 10 – Slides to support on Draghi, better US data

EUR/USD peaked out and began sliding, bouncing off support at 1.2660. Dovish comments from Mario Draghi as well as strong US data contribute to a recovery of the US dollar after the FOMC minutes madness. IMF meetings continue in Washington, and we have more Fed members to rock the boat as a volatile week draws to an end. Here’s

EUR/USD Oct. 9 – Breaking higher on FOMC meeting minutes

EUR/USD Oct. 9 – Breaking higher on FOMC meeting minutes

EUR/USD broke higher after the somewhat dovish FOMC meeting minutes and is now looking to even higher levels above 1.2750. The Fed expressed worries about global growth and the strong dollar, and the dollar certainly responded. The euro also ignores yet another disappointing German figure. Here’s a quick update on technicals, fundamentals and sentiment moving the