EUR/USD: downside technically limited ahead of FOMC – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that financial markets were paralyzed during the first half of the day, with currencies unable to react to macroeconomic readings, as traders continue to hold their breath ahead of the US Central Bank upcoming decision this week.

Key Quotes:

“During the American session, however, and despite a number of US disappointing figures, the dollar was under a firmer demand, particularly against its European rivals.

Macro data in Europe was mixed, as the EU employment rate rose by 0.3% during the second quarter of 2015, whilst the Trade Balance of the region presented a surplus of €31.4B during July. The economic sentiment in the region however, fell sharply in August according to the ZEW survey, with the EU reading down to 33.3 in September from 47.6 previous, whilst German sentiment fell down to 12.1 from previous 25. In the US, Retail Sales were softer than expected in August, as well as Industrial Production. The poor figures boosted stocks, as equities traders bet now on a delay in a US rate hike.

As for the EUR/USD pair technical outlook, the negative tone has increased in the short term after the …read more

Source:: FX Street