5 Feb 2014
EUR/USD unable to hold gains
FXStreet (Córdoba) - Despite a couple of upside attempts, the EUR/USD was unable to deviate from 1.3500 for long as cautious sentiment continues to restrain markets ahead of tomorrow's ECB monetary policy decision.
The EUR/USD spiked to a high of 1.3554 during the New York session but lacked follow-through and pulled back to the 1.3500 comfort zone where it has spent most of the week. At time of writing, the EUR/USD is trading at the 1.3525 area, a few pips above its opening price.
ECB eyed
"Despite the rosy picture that the data painted for the Eurozone economy, expectations of more policy easing by the ECB ensured that EUR/USD failed to move into positive territory", said the Talking-Forex.com team. "Looking ahead, as can be expected the focus remains upon tomorrow's ECB rate decision and accompanying press conference with speculation mounting over a potential rate cut. This is a view that has been supported by BNP Paribas saying they think a 15bps interest rate cut from the ECB this week more likely than not".
The EUR/USD spiked to a high of 1.3554 during the New York session but lacked follow-through and pulled back to the 1.3500 comfort zone where it has spent most of the week. At time of writing, the EUR/USD is trading at the 1.3525 area, a few pips above its opening price.
ECB eyed
"Despite the rosy picture that the data painted for the Eurozone economy, expectations of more policy easing by the ECB ensured that EUR/USD failed to move into positive territory", said the Talking-Forex.com team. "Looking ahead, as can be expected the focus remains upon tomorrow's ECB rate decision and accompanying press conference with speculation mounting over a potential rate cut. This is a view that has been supported by BNP Paribas saying they think a 15bps interest rate cut from the ECB this week more likely than not".