4 Jul 2013
EUR/USD parked around 1.3000
FXstreet.com (Edinburgh) - The bloc currency remained apathetic after the final GDP figures for the first quarter in the euro area, with the EUR/USD anchored around 1.3000 the figure.
EUR/USD unmoved ahead of ECB
Trade remains thin and volatility is almost non-existent ahead of the ECB gathering due later, as the inactivity in the US is weighting on the markets. The economic activity in the bloc contracted further during the first quarter, falling 0.3% inter-quarter vs. 0.2% in the previous print and 1.7% YoY. “Policy rates are widely expected to stay on hold but ECB President Draghi may intervene verbally at the press conference, potentially talking down market rates. Moreover, Draghi might provide more formal forward guidance and could expand on the OMT framework”, noted Senior Analyst Sverre Holbek at Danske Bank.
EUR/USD tech levels
At the moment the pair is down 0.10% at 1.2995 facing the next support at 1.2923 (low Jul.3) followed by 1.2859 (weekly cloud top) and finally 1.2838 (low May 29). On the flip side, a break above 1.3032 (high Jul.3) would target 1.3055 (MA100d) en route to 1.3078 (high Jul.2).
EUR/USD unmoved ahead of ECB
Trade remains thin and volatility is almost non-existent ahead of the ECB gathering due later, as the inactivity in the US is weighting on the markets. The economic activity in the bloc contracted further during the first quarter, falling 0.3% inter-quarter vs. 0.2% in the previous print and 1.7% YoY. “Policy rates are widely expected to stay on hold but ECB President Draghi may intervene verbally at the press conference, potentially talking down market rates. Moreover, Draghi might provide more formal forward guidance and could expand on the OMT framework”, noted Senior Analyst Sverre Holbek at Danske Bank.
EUR/USD tech levels
At the moment the pair is down 0.10% at 1.2995 facing the next support at 1.2923 (low Jul.3) followed by 1.2859 (weekly cloud top) and finally 1.2838 (low May 29). On the flip side, a break above 1.3032 (high Jul.3) would target 1.3055 (MA100d) en route to 1.3078 (high Jul.2).