Eur/usd - page 127
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EURUSD went up and down during the course of the session on Friday, making an inside day and essentially holding the 1.36 level again. That being the case, the market seems like it’s ready to move upward to the resistance at the 1.37 level again.
Mario Draghi’s newest stimulus tool will hand banks more than 700 billion euros ($950 billion) of cheap funding, economists say.
The European Central Bank president’s targeted lending program for banks will boost credit for the real economy as planned, and at the same time help keep the financial system flush with cash, according to the Bloomberg Monthly Survey of 45 economists. Draghi may address the topic today when he testifies at the European Parliament in Strasbourg for the first time since elections in May.
The ECB has identified lending to companies and households as a key weakness in the euro area’s fragile recovery. The so-called TLTRO program, part of a wider package of measures announced in June, offers as much as four years of low-cost funding tied to bank lending that Draghi said this month could ultimately provide as much as 1 trillion euros.
“The take-up should be large -- the money is cheap and banks should feel no stigma about accepting a free lunch,” said Alan McQuaid, chief economist at Merrion Capital in Dublin, who predicts banks will take the maximum available. “With any luck, Draghi’s next problem will not come until 2018, when 1 trillion euros needs refinancing.”
read moreI just wander why the stimulus funding always make the market change and on right way??. If the stimulus have fail to do its job, do the market maker still on right way?. I think their economic problem will still going worse. Just see on american economic, Unemployment rates too high right now..
EUR/USD steady to higher as market preps for Yellen testimony
The euro traded steady to higher against the dollar on Monday in a session void of major U.S. economic indicators as investors remained in standby mode ahead of Federal Reserve Chair Janet Yellen's congressional testimony on Tuesday and Wednesday.
In U.S. trading, EUR/USD was up 0.14% at 1.3626, up from a session low of 1.3592 and off a high of 1.3640.
The pair was likely to find support at 1.3589, Thursday's low, and resistance at 1.3651, Thursday's high.
In the minutes of the Federal Reserve's June policy meeting released last week, the U.S. central bank predicted an October close to its bond-buying stimulus program but did not provide a timetable as to when interest rates may begin to rise afterwards.
Falling U.S. Treasury yields have many guessing the Fed will take its time when it comes to hiking benchmark interest rates to ensure recovery remains on track, which allowed the dollar to slip against the euro on Monday, a day markets prepped for Yellen's testimony before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.
Elsewhere, euro zone industrial output numbers that met market expectations boosted the single currency over the greenback.
Eurostat, the statistical office of the European Union, reported earlier that industrial output across the euro area fell by 1.1% in May from April, less than market calls for a 1.2% contraction.
On an annualized basis, industrial production rose by 0.5%, in line with market expectations.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.29% at 0.7975, and up against the yen, with EUR/JPY up 0.36% at 138.40.
On Tuesday, the ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health.
The U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The U.S. is also to release data on import prices, business inventories and manufacturing activity in the New York state.
source
waiting for yellen's testimony this week i hope this will help the USD little bit
i think today we should see a big sell in eur/usd because of the fed meeting
EURUSD tried to rally during yesterday session, but as you can see gave back about half of the gains consolidating within a tight range of 1.3590 support and1.3650 resistance. Ultimately, this is a market that looks far too choppy to be trading.
German Economic Confidence Continues To Deteriorate
German economic confidence weakened for the seventh consecutive month in July, survey results from the Mannheim-based Centre for European Economic Research/ZEW showed Tuesday.
The indicator of economic sentiment fell 2.7 points to 27.1 in July. The score was expected to fall to 28.2.
"Germany has experienced a slight dent in economic activity recently - retail sales declined and industrial production as well as incoming orders dropped," said ZEW President Professor Clemens Fuest.
"The current decrease of the ZEW Indicator of Economic Sentiment reflects this sobering development. On a general note, however, the medium-term economic outlook remains favourable", added Fuest.
The survey showed that assessment of current economic situation declined by 5.9 points to 61.8 in July.
Economic sentiment in euro area decreased 10.3 to 48.1 in July. Likewise, current conditions fell by 3.8 points to -31.5.
we have a big day ahead of us
EUR/USD drops as dollar gains on Yellen testimony
The euro fell against a strengthening dollar on Tuesday after Federal Reserve Janet Yellen delivered an upbeat take on the U.S. economy in Congress though with an added warning that small-cap stocks may be frothy.
In U.S. trading, EUR/USD was down 0.35% at 1.3572, up from a session low of 1.3562 and off a high of 1.3628.
The pair was likely to find support at 1.3513, the low from June 16, and resistance at 1.3640, Monday's high.
Yellen told the Senate Banking Committee earlier that the U.S. economy continues to improve but added that the recovery is not yet complete. She said that considerable slack still remains in the labor market and wage growth remains weak.
Yellen reiterated that rates are likely to remain on hold for a considerable period after the bank’s quantitative easing program ends, though her observation that small-cap, biotech and other momentum stock valuations appear "stretched" gave the dollar support, leaving investors to conclude that interest rates could rise sooner than later if the labor market improves.
Yellen's comments overshadowed mixed U.S. data, which depicted an economy that continues to recover albeit on a road with lingering potholes.
The Commerce Department reported that U.S. retail sales rose just 0.2% in June, below forecasts for a 0.6% increase. Retail sales for May, however, were revised up to 0.5% from a previously reported 0.3%.
A separate report showed that manufacturing activity in New York state rose to a four-year high this month. The Empire state manufacturing index rose to 25.6 in July from 19.3 in June. Analysts had expected the index to decline to 17.0.
Meanwhile in Europe, the ZEW index of German economic sentiment fell to 27.1 in July from 29.8 in June. Analysts had expected the index to tick down to 28.0, and the disappointing number softened demand for the single currency.
read more
EURUSD fell during yesterday session, breaking below the upward trend line and the lows from the past couple of weeks amid jitters minutes before the testimony of Fed Chair Yellen before the US Congress.
However, there is a significant support zone from 1.3525 to 1.3476, market will try to test that area and find buyers.