EUR/USD: ECB jawbones the single currency lower – FXStreet
By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted that the EUR/USD pair fell to its lowest level in two weeks, reaching 1.1086 before finally bouncing as investors are adjusting positions ahead of the US employment report to be released this Friday.
Key Quotes:
“The EUR sunk following the latest ECB economic policy statement, in which Mario Draghi expressed officers’ concerns over the economic slowdown that affects emerging countries and China. Additionally, the ECB stuff downgraded its forecast for growth and inflation, and increased the issue share limit to 33% from previous 25%.”
“Somehow, the ECB has let investors known that QE is not working as well as he previously announced.”
“In the US however, news were mostly positive, with the US trade deficit shrinking to its smallest in five months, in July, down to $41.9B, while the ISM non-manufacturing PMI resulted at 59.0 in August, below previous 60.3, but above expectations of 58.1.”
“The pair is ending the day around 1.1130, and will likely trade in quite a limited range during the Asian session, as Chinese market will remain closed on holidays until next Monday.”
“Technically, the 1 hour chart shows that the technical indicators have corrected the extreme oversold readings reached …read more
Source:: FX Street
