5 Nov 2013
EUR/USD deflates to 1.3500
FXstreet.com (Edinburgh) -The shared currency is back around 1.3500 the figure on Tuesday, dragging the EUR/USD from overnight highs beyond 1.3520.
EUR/USD calm on empty docket
Second-tier releases in the euro area today – Spanish Unemployment Change and EMU’s Producer Prices - would leave investors looking for drivers across the pond, where the ISM Non-Manufacturing and the IBD/TIPP index are due. The European Commission will release its Economic Growth Forecasts, which may keep investors entertained during the European morning. In light of the next ECB meeting, Analyst Flemming Nielsen at Danske Bank noted, “The FX markets will be scrutinising the Draghi speech for any hints of further monetary stimuli in light of the low inflation numbers. EUR/USD is trading relative stable close to 1.35. However, given the latest move lower in EUR/USD, the risk is that Draghi is not going to say much, which might give some renewed support to the euro”.
EUR/USD levels to watch
The pair is now losing 0.18% at 1.3495 with the initial support at 1.3442 (low Nov.4) ahead of 1.3472 (low Oct.16) followed by 1.3468 (50% of 1.3105-1.3833). On the flip side, a break above 1.3589 (high Nov.1) would expose 1.3638 (MA21d) and then 1.3696 (low Oct.30).
EUR/USD calm on empty docket
Second-tier releases in the euro area today – Spanish Unemployment Change and EMU’s Producer Prices - would leave investors looking for drivers across the pond, where the ISM Non-Manufacturing and the IBD/TIPP index are due. The European Commission will release its Economic Growth Forecasts, which may keep investors entertained during the European morning. In light of the next ECB meeting, Analyst Flemming Nielsen at Danske Bank noted, “The FX markets will be scrutinising the Draghi speech for any hints of further monetary stimuli in light of the low inflation numbers. EUR/USD is trading relative stable close to 1.35. However, given the latest move lower in EUR/USD, the risk is that Draghi is not going to say much, which might give some renewed support to the euro”.
EUR/USD levels to watch
The pair is now losing 0.18% at 1.3495 with the initial support at 1.3442 (low Nov.4) ahead of 1.3472 (low Oct.16) followed by 1.3468 (50% of 1.3105-1.3833). On the flip side, a break above 1.3589 (high Nov.1) would expose 1.3638 (MA21d) and then 1.3696 (low Oct.30).