Wednesday, February 26, 2014
In today's webinar, we discussed price action in the EUR/USD pair and the technical and fundamental reason's for the sell-off in the common currency. We also identify areas of support and resistance that you can use when setting up future trades.
Thursday, February 6, 2014
Today's US trading session was fueled primarily by Euro strength, after the ECB had announced no change to their monetary policy and no cut in their 0.25% refi rate. The EUR/USD rallied 137 pips from the session low at 1.3482 to today's current high of 1.3619, where it found resistance.
Many investors were disappointed in the ECB's lack of response to the current weakness seen in some of the Eurozone Core data, as well as January's low inflation of 0.7%, which is far below the ECB's 2% target. While ECB president, Mario Draghi, admits that inflation is low in the region, he doesn't see any future signs of deflation for the Eurozone economy as a whole, anytime soon.
Mario Draghi's Statement at Press Conference:
- Underlying Eurozone Price Pressures to Remain Weak.
- Monetary Policy Stance to Be Accomodative as Long as Needed.
- Expect key ECB interest Rates to remain at present or lower levels for extended period.
- Monitoring Money Markets Closely, Ready to consider all tools.
- Will take decisive action if required.
- Risks to economic outlook remain on the downside.
- Unemployment stabilizing, but remains high.
- Underlying Price Pressures Should Remain Subdued Over Mid-Term.
- Inflation Expectations in Euro Area Remain Firmly Anchored.
The AUD/USD was the biggest winner for the 2nd time this week. The Australian Trade Balance reported their first surplus since July at $0.47 billion. Their Retail Sales also posted gains at 0.5% m/m. For this week alone, the Aussie has jumped over 200 points against the US dollar.