23 May 2014
EUR/USD on autopilot around 1.3630
FXStreet (Edinburgh) - The single currency managed to leave the area of 1.3615/10 and is now pushing the EUR/USD back to the 1.3630/35 region.
EUR/USD unmotivated, focus on the ECB
The euro continues to trade isolated from any data releases or risk events in the region, as the focus only seems to be on the ECB meeting on June 5th. Despite a rate cut is almost fully priced in by the markets, it remains to be seen whether this will be the only easing measure to implement by the central bank against a backdrop of increasing speculations in that regard. “Press reports suggest that the ECB could lower the refi rate by only 10 basis points to 0.15% (and the deposit rate to -0.10%) in early June. This would leave room for another small rate cut of 10 basis points should the ECB be so unhappy with developments that it wants to take further action but does there is not a majority in the ECB Governing Council for QE before the time window closes”, assessed the research team at Commerzbank.
EUR/USD key levels
As of writing the pair is losing 0.21% at 1.3626 with the next support at 1.3585 (low Feb.13) ahead of 1.3563 (low Feb.12) and finally 1.3552 (low Feb.7). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).
EUR/USD unmotivated, focus on the ECB
The euro continues to trade isolated from any data releases or risk events in the region, as the focus only seems to be on the ECB meeting on June 5th. Despite a rate cut is almost fully priced in by the markets, it remains to be seen whether this will be the only easing measure to implement by the central bank against a backdrop of increasing speculations in that regard. “Press reports suggest that the ECB could lower the refi rate by only 10 basis points to 0.15% (and the deposit rate to -0.10%) in early June. This would leave room for another small rate cut of 10 basis points should the ECB be so unhappy with developments that it wants to take further action but does there is not a majority in the ECB Governing Council for QE before the time window closes”, assessed the research team at Commerzbank.
EUR/USD key levels
As of writing the pair is losing 0.21% at 1.3626 with the next support at 1.3585 (low Feb.13) ahead of 1.3563 (low Feb.12) and finally 1.3552 (low Feb.7). On the flip side, a breakout of 1.3688 (high May 22) would target 1.3705 (Tenkan Sen) en route to 1.3723 (high May 21).