5 Sep 2013
EUR/USD slumps on dovish Draghi
FXstreet.com (Córdoba) - The EUR/USD took a negative turn and fell back below the 1.3200 level in the aftermath of US ADP and jobless claims and Draghi’s introductory statement on monetary policy.
EUR/USD falls to fresh 6-week lows
EUR/USD fell to fresh daily lows, erasing ADP gains as Draghi sounded pretty dovish. Even though he said the ECB has upgraded projection for 2013 GDP for a contraction of 0.4% versus a June forecast for the economy to shrink 0.6%, he reiterated risks remain skewed to the downside.
ECB President also repeated interest rates should remain at present or lower levels "for an extended period of time" and that the bank stands ready to act if needed.
EUR/USD testing key support
EUR/USD has dropped to a marginal new 6-week low of 1.3137 where the 100-day SMA offered support. At time of writing, EUR/USD is trading around 1.3140, 0.5% below its opening price.
EUR/USD falls to fresh 6-week lows
EUR/USD fell to fresh daily lows, erasing ADP gains as Draghi sounded pretty dovish. Even though he said the ECB has upgraded projection for 2013 GDP for a contraction of 0.4% versus a June forecast for the economy to shrink 0.6%, he reiterated risks remain skewed to the downside.
ECB President also repeated interest rates should remain at present or lower levels "for an extended period of time" and that the bank stands ready to act if needed.
EUR/USD testing key support
EUR/USD has dropped to a marginal new 6-week low of 1.3137 where the 100-day SMA offered support. At time of writing, EUR/USD is trading around 1.3140, 0.5% below its opening price.