8 Dec 2014
EUR/USD recovers after ECB slows Asset Purchases
FXStreet (Mumbai) - The single currency recovered losses against the greenback after the data from the European Central Bank (ECB) revealed the bank slowed down asset purchases last week.
The EUR/USD now trades 0.04% higher for the day at 1.2287 levels. Markets were expecting the ECB may have stepped up its asset purchases due to which the EUR was trading under pressure ahead of the data. However, the central bank settled EUR 233 million of asset-backed-securities (ABS) purchases in the week ended Dec 5, down from the EUR 368 million spend during the first week of the program. The bank also bought EUR 3.126 billion of covered bonds, down from EUR 5.078 billion the previous week. Moreover, the slowdown in the purchases raises question on whether the central bank is doing enough to expand its balance sheet.
Meanwhile, the EUR has also benefited from a decline the US treasury yields. The 10-yr yield in the US now trades 1.3 basis points lower at 2.294%, although the 2-yr yield is still up at 0.652%.
EUR/USD Technical Levels
The pair has an immediate support located at 1.2248, under which a strong support is seen at 1.2231 levels. Meanwhile, resistance is seen at 1.2303 and 1.2357 levels.
The EUR/USD now trades 0.04% higher for the day at 1.2287 levels. Markets were expecting the ECB may have stepped up its asset purchases due to which the EUR was trading under pressure ahead of the data. However, the central bank settled EUR 233 million of asset-backed-securities (ABS) purchases in the week ended Dec 5, down from the EUR 368 million spend during the first week of the program. The bank also bought EUR 3.126 billion of covered bonds, down from EUR 5.078 billion the previous week. Moreover, the slowdown in the purchases raises question on whether the central bank is doing enough to expand its balance sheet.
Meanwhile, the EUR has also benefited from a decline the US treasury yields. The 10-yr yield in the US now trades 1.3 basis points lower at 2.294%, although the 2-yr yield is still up at 0.652%.
EUR/USD Technical Levels
The pair has an immediate support located at 1.2248, under which a strong support is seen at 1.2231 levels. Meanwhile, resistance is seen at 1.2303 and 1.2357 levels.