8 Dec 2014
EUR/USD extends losses on Nowotny’s comments
FXStreet (Mumbai) - The single currency extended losses against the greenback after the European Central Bank policy maker Nowotny indicated a high probability of inflation slowing down in Q1 2015.
The EUR/USD pair now trades 0.20% lower at 1.2256. The pair traded more or less flat at the onset of the European session after the German industrial production data registered growth in October. However, the EUR was sold after the ECB policy maker hinted at a slowdown in inflation, while mentioning German economic slowdown as the main reason for the economic weakness in the Eurozone. He also stated that the ECB is taking a note of its still shrinking balance sheet.
Meanwhile, the US dollar continues to remain strong on a stellar jobs report release on Friday. The US 10-yr treasury yield is up 2.8 basis points at 2.335%.
EUR/USD Technical Levels
The pair has a strong support located at 1.2237 (200-monthly SMA), under which losses could be extended to 1.2132 (Aug 2012 low). Meanwhile, resistance is seen at 1.2329 and 1.24 levels.
The EUR/USD pair now trades 0.20% lower at 1.2256. The pair traded more or less flat at the onset of the European session after the German industrial production data registered growth in October. However, the EUR was sold after the ECB policy maker hinted at a slowdown in inflation, while mentioning German economic slowdown as the main reason for the economic weakness in the Eurozone. He also stated that the ECB is taking a note of its still shrinking balance sheet.
Meanwhile, the US dollar continues to remain strong on a stellar jobs report release on Friday. The US 10-yr treasury yield is up 2.8 basis points at 2.335%.
EUR/USD Technical Levels
The pair has a strong support located at 1.2237 (200-monthly SMA), under which losses could be extended to 1.2132 (Aug 2012 low). Meanwhile, resistance is seen at 1.2329 and 1.24 levels.