7 May 2014
EUR/USD supported at 1.3910
FXStreet (Edinburgh) - It seems the EUR’s decline found buying interest in the 1.3910 region on Wednesday, lifting the EUR/USD back to the 1.3925/30 band.
EUR/USD focus on Yellen, ECB
The next risk event for the single currency will be the speech by Chairwoman J.Yellen tonight. Market consensus expects Yellen to reiterate the dovish tone and the rhetoric around the slack in the labour market and the low inflation, which would be USD-negative. In light of the upcoming ECB meeting and certainly the biggest event for the EUR, Chief FX Strategist Camilla Sutton at Scotiabank commented, “the combination of low inflation and rallying EUR is certainly enough to introduce policy action and raises the risk but instead we expect the introduction of a more dovish tone, opening the door fully to action at the June meeting”.
EUR/USD levels to watch
The pair is now losing 0.02% at 1.3924 with the immediate support at 1.3873 (low May 6) followed by 1.3866 (10-d MA) and then 1.3865 (low May 5). On the flip side, a breakout of 1.3952 (high May 6) would expose 1.3967 (2014 high Mar.13) and finally 1.4000 (psychological level).
EUR/USD focus on Yellen, ECB
The next risk event for the single currency will be the speech by Chairwoman J.Yellen tonight. Market consensus expects Yellen to reiterate the dovish tone and the rhetoric around the slack in the labour market and the low inflation, which would be USD-negative. In light of the upcoming ECB meeting and certainly the biggest event for the EUR, Chief FX Strategist Camilla Sutton at Scotiabank commented, “the combination of low inflation and rallying EUR is certainly enough to introduce policy action and raises the risk but instead we expect the introduction of a more dovish tone, opening the door fully to action at the June meeting”.
EUR/USD levels to watch
The pair is now losing 0.02% at 1.3924 with the immediate support at 1.3873 (low May 6) followed by 1.3866 (10-d MA) and then 1.3865 (low May 5). On the flip side, a breakout of 1.3952 (high May 6) would expose 1.3967 (2014 high Mar.13) and finally 1.4000 (psychological level).