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4 Dec 2014
EUR/USD breaches 1.2300
FXStreet (Edinburgh) - The single currency remains under heavy selling pressure today, with EUR/USD briefly testing sub-1.2300 levels for the first time since August 2012.
EUR/USD it’s all about the ECB
There are no data releases scheduled in the euro area for today, with only the ECB monetary policy meeting and the subsequent press conference by Mario Draghi grabbing all the attention. In the meantime, market speculations continue to build up regarding the possibility of the European Central Bank to open further the stimulus pump, with sovereign bond purchases taking centre stage once again. Pernille Nielsen, Senior Analyst at Danske Bank adds “The ECB’s two contingencies for more easing should not have been triggered, as it still believes the current easing measures are enough to boost the balance sheet and the medium-term outlook for inflation expectations should not have worsened enough to warrant more easing”.
EUR/USD levels to watch
As of writing the pair is losing 0.07% at 1.2300 with the next support at 1.2288 (low Aug.17 2012) ahead of 1.2256 (low Aug.16 2012) and finally 1.2242 (low Aug.10 2012). On the flip side, a breakout of 1.2390 (high Dec.3) would open the door to 1.2419 (low Dec.1) and then 1.2449 (21-d MA).
EUR/USD it’s all about the ECB
There are no data releases scheduled in the euro area for today, with only the ECB monetary policy meeting and the subsequent press conference by Mario Draghi grabbing all the attention. In the meantime, market speculations continue to build up regarding the possibility of the European Central Bank to open further the stimulus pump, with sovereign bond purchases taking centre stage once again. Pernille Nielsen, Senior Analyst at Danske Bank adds “The ECB’s two contingencies for more easing should not have been triggered, as it still believes the current easing measures are enough to boost the balance sheet and the medium-term outlook for inflation expectations should not have worsened enough to warrant more easing”.
EUR/USD levels to watch
As of writing the pair is losing 0.07% at 1.2300 with the next support at 1.2288 (low Aug.17 2012) ahead of 1.2256 (low Aug.16 2012) and finally 1.2242 (low Aug.10 2012). On the flip side, a breakout of 1.2390 (high Dec.3) would open the door to 1.2419 (low Dec.1) and then 1.2449 (21-d MA).