Eur/usd - page 163
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
EURUSD broke higher during the course of yesterday session, but found enough resistance near the 1.29 level to turn things back around also the 10 day moving average is pushing the pair down. However, if we close below the 1.28 level, this pair will continue to drop from there. Rallies on short-term charts will continue to offer selling opportunities all the way to the 1.30 level as far as we can see.
ECB to keep easy policy until inflation nears 2 percent: Draghi
European Central Bank chief Mario Draghi said on Wednesday that euro zone monetary policy would remain accommodative for a long period and that the goal was to push ultra-low inflation back up closer to the two percent level.
"Monetary policy will remain accommodating for a long time and I can tell you that the (ECB) Governing Council is unanimous in committing itself to using the tools at its disposal to bring inflation back to just under two percent," Draghi said in an interview on French Europe 1 radio.
Ifo shows German business confidence continues to slide
German business confidence declined further in September, adding to evidence that Europe's largest economy remains under pressure. The Ifo business-climate index for September dropped to 104.7, missing forecasts for a 105.8 reading, according to Dow Jones Newswires. Germany's DAX 30 index DAX, -0.13% traded 0.2% lower at 9,578.90 after the data. The Ifo report comes a day after manufacturing data for the country showed growth in factory activity hit a 15-month low in September.
EUR / USD started to rise yesterday but had no strength to overcome the resistance of 1.2900 and fell closing the day nearly unchanged.
The yields of the USA and expectations of interest rates subsided yesterday and the dollar was mixed in trading usually without trend.
Draghi Says Euro Level Reflects Monetary-Policy Paths
The euro’s depreciation is in line with the divergence of monetary policies around the world, European Central Bank President Mario Draghi said.
“The exchange-rate movement reflects the different path of monetary policies in Europe versus the monetary policies in other important countries,” Draghi said in an interview with Europe 1 Radio published on the ECB’s website today. “Our monetary policy will stay accommodative through time for an extended period of time while other countries’ monetary policies may gradually acknowledge that recovery is taking place in their countries.”
The euro has dropped 6 percent against the dollar since early June, when the ECB announced stimulus measures including interest-rate cuts and targeted longer-term loans for banks, and is trading near the lowest level in more than a year. Officials cut rates again this month and said the central bank will start buying asset-backed securities and covered bonds.
“We have a mandate and we have to comply with this,” Draghi said. “We’ll do everything that is needed within our mandate.”
The ECB defines its mandate to ensure price stability as keeping inflation close to but just below 2 percent. Inflation in the 18-nation euro area held at 0.4 percent in August, the weakest pace in almost five years. Economic growth in the currency bloc came to a halt in the second quarter.
While ECB officials have said the Frankfurt-based central bank’s policy will remain accommodative for an extended period of time, the U.S. Federal Reserve has tapered its monthly bond buying to $15 billion, staying on course to end the program in October as the economy recovers.
source
thanks for the news
Stocks rise as Draghi fuels stimulus hopes, euro slumps
World stock indexes rose and the euro slumped below $1.28 on Wednesday after European Central Bank President Mario Draghi renewed a pledge to keep monetary policy loose for an extended period.
U.S. stocks ended solidly higher, with the S&P 500 index posting its biggest one-day advance in more than a month. An emerging markets stock index also rose, breaking a run of recent declines.
Draghi renewed a pledge to keep monetary policy accommodative for as long as it takes to push ultra-low inflation in the euro zone closer to 2 percent.
Also helping equities, a top Federal Reserve official said the Fed should be "exceptionally patient" in removing monetary policy accommodation.
Investors have been rattled by this week's worse-than-expected economic data from euro zone countries.
There was more bad news on Wednesday, with German business sentiment dropping for a fifth straight month in September to its lowest since April 2013 and the Bank of Spain warning that Spanish private consumption growth and job creation were likely to have slowed in the third quarter.
Despite the weak European data, MSCI's global share index .MIWD00000PUS was up 0.4 percent, while European shares .FTEU3 ended up 0.8 percent.
The MSCI emerging stocks index .MSCIEF edged up 0.2 percent, only its second daily gain in 15 sessions.
U.S. equities resumed their climb. The Dow Jones industrial average .DJI rose 154.19 points, or 0.9 percent, to 17,210.06, the S&P 500 .SPX gained 15.53 points, or 0.78 percent, to 1,998.3 and the Nasdaq Composite .IXIC added 46.53 points, or 1.03 percent, to 4,555.22.
"This is a market that continues to attract capital from other asset classes, because where else can investors go for yield?" said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.
Also helping U.S. stocks was a strong report on the housing market.
In the foreign exchange market, the euro traded as low as $1.277 against the dollar, a 14-month low, and was last off 0.5 percent.
U.S. benchmark Treasuries yields were higher for the first time in five sessions after weak demand at a five-year note auction underscored concern about Fed rate hikes.
U.S. 10-year Treasury notes were last down 9/32 in price to yield 2.57 percent, from a yield of 2.53 percent late Tuesday.
Oil settled higher after shrugging off early losses. A report showed an unexpected drawdown in U.S. crude inventories.
Brent crude for November delivery LCOc1 rose 10 cents to settle at $96.95 a barrel. It is down more than 6 percent for the month so far. U.S. crude CLc1 rose $1.24 to settle at $92.80.
source
EURUSD fell during the course of yesterday session, breaking below the 1.28 level. However, the 1.28 level is only a short-term support, as far as long-term charts are concerned the significant amount of support is all the way down to the 1.2750 level. The pair seems as if it’s ready to try to break down. Rallies however would offer nice selling opportunities as we will more than likely have to pick away at this massive support region.
Euro Shows Draghi Succeeding Where Loans Fall Short
Traders are showing confidence in Mario Draghi’s ability to weaken the euro and stave off deflation, even as the initial results of a key part of the European Central Bank president’s plan fell below estimates.
Draghi has signaled he wants to boost the central bank’s balance sheet to as much as 3 trillion euros ($3.8 trillion) of assets from 2 trillion euros, expanding the supply of euros in the process. Yet, when the ECB went to lend cash to banks under its first targeted longer-term refinancing operation, they borrowed just 82.6 billion euros.
Traders pushed the euro to an almost two-year low of $1.2697 today, even though the loans take-up was below the 100 billion euros to 300 billion euros predicted in a Bloomberg survey. Companies from UBS Wealth Management AG to Morgan Stanley say they aren’t discouraged, and the 18-nation currency is poised to depreciate further as more euros make their way into circulation.
“Draghi’s main message is clear,” Thomas Flury, the head of foreign-exchange research at the Swiss money manager, said Sept. 23 in a phone interview from Zurich. “The ECB wants to have a big balance sheet, and there’s a problem with deflation expectations, and therefore they will do more.”
‘Consistently Decline’
The euro will tumble about 6 percent to $1.20 in the next year, according to Flury, whose company oversees about $2 trillion. The currency has weakened 9 percent from a 2 1/2-year high of $1.3993 in May to trade at $1.2728 as of 10:13 a.m. in London.
“The ECB’s balance-sheet expansion is very significant for the euro,” Sireen Harajli, a strategist at Mizuho Bank Ltd. in New York, said in a Sept. 23 phone interview. “This is why the market is now expecting the euro to consistently decline.”
Video: Euro-Zone Confidence Falls: How Will Draghi Respond?
A weaker currency suits Draghi. It makes euro-region exports more competitive, while stoking inflation by making imports more expensive. At 0.4 percent in August, annual inflation remains a fraction of the ECB’s target of just under 2 percent. Growth in manufacturing and services has slowed to the weakest this year, and business confidence in Germany is at a 17-month low, reports showed this week.
ECB policy makers have stepped up efforts to boost the Frankfurt-based central bank’s balance sheet after lowering their three key interest rates and announcing the targeted longer-term refinancing operations, or TLTROs, in June. They cut borrowing costs again this month and announced plans to buy asset-backed bonds.
read more
The dollar is now trading higheragainst all its major peers.
The EURUSD approachedthe low levels of November2012, as ECBPresident Mario Draghi, speaking at a conference organized by the central bank of Lithuania within 100 days of entryinto the euro this country.