EUR/USD falls below 1.2400

FXStreet (Córdoba) - EUR/USD broke below 1.2400 and pushed toward fresh daily lows as the dollar strengthened against majors ahead of the FOMC statement and weighed by ECB Coeure comments.

EUR/USD dropped more than 60 pips in a matter of minutes and hit a low of 1.2385 coincidentally with a spike of the dollar versus other Europeans counterparts and also pressured by comments from ECB Coeure saying there is broad consensus the ECB needs to do more.

At time of writing, EUR/USD is trading at 1.2395, recording a 0.91% loss on the day, having spent the last hours clung to 1.2460. Immediate support is now seen at 1.2370 (Dec 11 low), while the 21-hour SMA at 1.2375 should offer resistance on bounces.

Focus remains on the FOMC monetary policy statement that will be released at 19:00 GMT, with expectations growing around the Fed might drop the ‘considerable time’ reference to the appropriate period to maintain rates at record low.

Will volatility be a factor in the FOMC? - BBH

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes the forthcoming FOMC and possibility of topics.
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GBP/USD contained ahead of 1.58 and trade heavy

Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that GBP is soft, down on a broadly stronger USD and a disappointing employment release.
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