21 Nov 2013
Flash: EUR/USD turning lower – TDS
FXstreet.com (London) - A research team at TD Securities noted that the EUR/USD traded in a very narrow range for most of the overnight session, but in recent hours has been boosted, taking back some of yesterday’s losses.
Key Quotes:
“The trigger for yesterday’s selloff was a headline suggesting that negative deposit rates was an option for the ECB, but that was nothing new, and in a speech this morning Draghi reaffirmed that the thinking has not changed since the last policy meeting”.
“Draghi’s comments managed to overshadow the preliminary PMI numbers for November, which on balance were mixed”.
“Overall, a weak turn in EZ economic activity does not bode well for the EUR while data elsewhere in the developed world continues to hold up. Today’s US data will be viewed in that context”.
“On the charts, yesterday’s large bearish outside-range day for EUR/USD does significant damage to the rebound of the last week, and suggests rallies should be limited in the short term. Resistance above is spotted near 1.3500, while 1.3400/25 is the nearest short term support to watch. Below there it could be a quicker slide toward 1.3300”.
Key Quotes:
“The trigger for yesterday’s selloff was a headline suggesting that negative deposit rates was an option for the ECB, but that was nothing new, and in a speech this morning Draghi reaffirmed that the thinking has not changed since the last policy meeting”.
“Draghi’s comments managed to overshadow the preliminary PMI numbers for November, which on balance were mixed”.
“Overall, a weak turn in EZ economic activity does not bode well for the EUR while data elsewhere in the developed world continues to hold up. Today’s US data will be viewed in that context”.
“On the charts, yesterday’s large bearish outside-range day for EUR/USD does significant damage to the rebound of the last week, and suggests rallies should be limited in the short term. Resistance above is spotted near 1.3500, while 1.3400/25 is the nearest short term support to watch. Below there it could be a quicker slide toward 1.3300”.