EUR/USD is a roller coaster! Amazing turnaround – the ECB was very busy at bond buying while Trichet kept everybody bored and disappointed. What a show! EUR/USD went from 1.3180 before the event down to 1.3080 on the disappointment and back all the way up – now at new highs, now around the 1.32 line.
While Jean-Claude Trichet was speaking about price stability and not committing to any grand quantitative easing program, the ECB was apparently working hard in – buying bonds. Jamie Coleman reports about the bond buying and that the numbers will be published on Monday.
During the press conference, it seemed that Trichet wasn’t delivering, sounding too calm and distanced from the credit crisis. EUR/USD fell from 1.3180 down to 1.3060. It’s now back up to 1.3070. Quite amazing. Spanish bond yields are still above the levels before the press conference, at 5.13%, lower than the peak in the middle of the event – 5.15%.
Izabela Kaminska, on Alpahville, brings some numbers:
Started evidently in bidding for 10 -25 mln â‚¬ clips and then moved onto 100 mln â‚¬ clips “¦ which is very rare indeed evidently
Update 15:10 EUR/USD marching forward and crossed 1.32. This is a line of resistance. 1.3267 and 1.334 are next.
See more technical analysis in the EUR/USD forecast.