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EURUSD: Euro steady as market participants digest ECB’s decision

Discussion in 'Forex Daily News & Outlook' started by ForexBrokerInc, Dec 5, 2014.

  1. ForexBrokerInc

    ForexBrokerInc New Member

    Jul 22, 2014
    Likes Received:
    The European Central Bank decided to hold off on implementing new stimulus program and kept its interest rates at 0.05% and will reassess its achievements in first quarter of 2015.

    Despite quite dovish outlook on the Eurozone with services sector continues to slow, alongside it are contracting inflation pressures the euro area economy and interest rates at lowest levels seen, the single currency remains under strong pressure ahead of Friday’s NFP numbers.

    The single most traded pair rose from 1.23 to 1.2450 within hours after ECB’s statement and higher than expected US Initial jobless claims only for the move to attract sellers and halve Euro’s gain shortly after.

    There may be various reasons for such sharp increase, from traders taking part of their profits and thus driving price up to traders pushing the price up only to trigger higher volumes at a better price, nevertheless it doesn’t change the overall outlook on the Eurozone and the single currency.

    Technically speak, the pair is currently traded at Weekly’s support level with next target to be in area of 1.2280.

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