A new day, a new round number falls, and the pace seems to be accelerating. After EUR/USD lost 1.07 in the Asian session, it continued lower on Draghi’s speech.
The latest dip sends it below 1.06 and the low so far is 1.0593. As we noted before, real support below 1.0760 is only at 1.05.
The president of the ECB said nothing really new, but it didn’t really matter.
The determination to push forward with QE and the re-iteration that the better forecasts depend on the full implementation of the measures – the bond buying program.
The central bank began buying bonds on Monday and made clear that it is going well. Bond yields have continued falling across the currency union, with Greece being the exception.
And Greece is another issue weighing on the euro.
Here are a few opinions:
- If Short EUR/USD, What To Do Now? – BNPP
- EUR/USD targets down to 1.05 in 3m, 0.98 in 12m – CS
- EUR/USD: 1.05 Next Target En-Route To Parity; Downtrend Firmly In Place – ANZ
In the fresh podcast, we talk about the US economy, the Australian and Canadian rate decisions, a potential easing in Japan, the widening gap within oil prices and an update on forex brokers after the SNBomb
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