Thursday, September 4, 2014
Today was another eventful day in the currency market with the euro falling to a 14-month low after the ECB cut their refi rate to 0.05% & deposit rate to -0.2%, as well as announced plans to purchase asset-backed securites & covered bonds in an attempt to boost the recovery of the ailing Eurozone economy. The common currency fell ~1.5% against the dollar, from the session high at 1.3154 to the session low at 1.2920, creating a 234 pip slide.
The BOE (Bank of England) left its benchmark rate at 0.5% and its asset purchase facility at UK375 billion after today's MPC meeting. The Sterling barely reacted to this news, but responded heavily to the release of the ECB meeting minutes, causing the pound to weaken 149 pips from the session high at 1.6456 to the session low of 1.6307.
In today's webinar, we discuss this announcement in detail, as well as analyze price action to identify points of trade entry in EUR/USD pair.
Tuesday, August 26, 2014
For the sixth consecutive trading day, the single currency (euro) has fallen in comparison to the greenback, due to polarizing fundamentals on both sides of the pond. We are continuing to see deflationary concerns weigh heavily on the Eurozone economy, while US economic data continues to surprise the market to the upside. Investors are starting to price in the likelihood of an unconventional, large scale asset purchasing program by the ECB, that will help to stimulate the Eurozone economy, while weakening the euro. The FED, on the other hand, are slowly moving towards tightening their monetary policy, which will strengthen
During today's trading session the EUR/USD fell 50 pips from the session high at 1.3215 to the session low at 1.3165. The High Beta commodity currencies saw strong intra-day moves, with the AUD/USD rebounding for a 59 pip rally, from the session low at 0.9272 to the session high of 0.9331.
In today's trading webinar, we observed price action in a few currency pairs and identified common areas of support and resistance for trade entry.