19 May, 2015
The EUR/USD pair weakened sharply to 1.12 as it met with fresh offers above 1.13 after the ECB’s Coeure said that the bank may front-load its QE program before summer for seasonal reasons.
EUR weakens as bond Yields fall
The shared currency fell into losses as the benchmark bond yields across the Eurozone took a hit after Coeure said the ECB may buy more bonds in May, June for seasonal reasons. It means the bank may buy bonds more than its monthly target of EUR 60 billion.
The EUR took a hit on the “accelerated QE” and the talk of deposit rate falling further into the negative territory. The expectations of further cut into negative territory were triggered since Coeure said short-term rate below zero does not pose a policy problem.
EUR/USD Technical Levels
The pair currently trades at 1.1191. The immediate support is seen at 1.1178, under which the pair could extend the drop to 1.1130. On the flip side, a break above 1.12 could see the pair recover back to 1.1250 levels.
Struggles to build on overnight strong up-move despite a goodish USD rebound. Bulls tracked retracing US bond yields, tough risk-on mood...
The index rebounds from tops and tests 95.70. Yields of the US 10-year note ease a tad from peaks around 2.90%. US trade balance figures next of relevance...
USD weakness came to a halt yesterday after the Fed's Kaplan emphasised the central bank's independence, thus reassuring markets that
Brexit uncertainty, Turkish contagion fears leave the higher-yielding GBP vulnerable. Attention turns to Tuesday UK jobs report amid empty docket today...
The commodity extended last week's rejection slide from $1235 horizontal resistance and remains within striking distance of an important horizontal...
Gold has fallen to a yearly low, as it lost around 4% in June itself (end-of period prices), contrasting sharply with the above $13000/oz. price performance in the early part...
Fading German political uncertainty lifts EUR and prompts some weakness. Flattening of the US yield curve further collaborates to the weaker tone...
At this point, it would be extremely surprising were the Committee to forego a rate hike. Economic data have indicated accelerating activity over the...
Fails to benefit from the ongoing USD retracement slide and escalating trade tensions. Fading safe-haven demand/rising US bond yields/ECB QE...