Session Recap: EUR/USD bounces at 1.3440 as polls say ECB won't hike rates

FXstreet.com (San Francisco) - The Euro started the week with strong note against the US Dollar after the last week’s sell-off as the single currency is waiting for details from the ECB and the USD is consolidating just ahead GDP and Employment data this week.

According to recent polls, the ECB wouldn't hike rates in the Thursday's meeting. So the Euro’s decline on speculations on the rate has lost steam. On the other side, market remains concerned on the Federal Reserve's taper intentions as today's batch of officials' speeches say that the central bank is not in hurry to taper.

Later on the day, the S&P affirmed that the US shutdown shaved 0.1% from the 2013 growth and now the agency expects 1.7% GDP advance in 2013 in the United States.

The EUR/USD recovered the 1.3500 level after bouncing at 1.3440 and now the pair is trading at 1.3515, 0.20% positive on the day. Same story in the GBP/USD as the Cable bounced at 1.5900 and climbed to the current 1.5970.

The USD/JPY wasn't able to extend gains above the 98.90 area and the pair declined to close the day around 98.60. On the other side, the AUD/USD broke above 0.9500 and closed the day at 0.9515, highest since October 31st.

Main headlines in the American Session:

Fed's Bullard: QE dependent on economic data

US: ISM New York Index jumps to 59.3 in October

US: Factory Orders rise by 1.7% in September, as expected

Fed’s Powell: US monetary policy to remain highly accommodative for some time

Reuters poll sees ECB on hold Thursday

S&P trims US GDP forecast

More gains in Wall Street ahead of crucial economic data

Flash: EUR/USD heading 1.3400? - Rabobank

Jane Foley, Senior Currency Strategist at Rabobank said that while our best guess is that a December taper is unlikely, what is clear is that whispers about Fed policy still have an enormous power on risk appetite.
了解更多 Previous

Flash: To taper or not to taper? - Investec

Research teams at Investec Bank noted that Fisher has implied that tapering may not be on the cards this side of Christmas.
了解更多 Next