26 Aug 2015
EUR/USD downside limited on Dudley - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the American dollar wiped out all of its weekly losses against most of its rivals, exception made by the Japanese Yen that maintains most of its latest gains.
Key Quotes:
"Dollar's comeback however, was limited by William Dudley, President of the Reserve Bank of New York, who said that a September rate hike seems less compelling now than a few weeks ago. Indeed, the ongoing worldwide markets' turmoil is not the best scenario for a lift off, and investors know it, having already priced in the minimum chances of a FED rate hike for September."
"The main event of the day was US Durable Goods Orders for July, climbing in July 2.0% against expectations of a 0.4% decline. The release gave an already on-demand greenback an additional boost, with the EUR/USD pair reaching a fresh weekly low of 1.1351. The pair corrected intraday up to 1.1437 on Dudley's dovish comments, but the general optimism that took over markets in the second half of the day prevailed, and the EUR/USD remains near its daily lows, with the hourly chart showing that during its latest advance, sellers surged around the 100 SMA."
"In the same chart, the technical indicators are losing their bearish potential near oversold levels, but are far from suggesting the pair may change course. In the 4 hours chart, however, the bearish momentum remains strong, with the technical indicators heading sharply lower into the red and the price well below a now flat 20 SMA."
Key Quotes:
"Dollar's comeback however, was limited by William Dudley, President of the Reserve Bank of New York, who said that a September rate hike seems less compelling now than a few weeks ago. Indeed, the ongoing worldwide markets' turmoil is not the best scenario for a lift off, and investors know it, having already priced in the minimum chances of a FED rate hike for September."
"The main event of the day was US Durable Goods Orders for July, climbing in July 2.0% against expectations of a 0.4% decline. The release gave an already on-demand greenback an additional boost, with the EUR/USD pair reaching a fresh weekly low of 1.1351. The pair corrected intraday up to 1.1437 on Dudley's dovish comments, but the general optimism that took over markets in the second half of the day prevailed, and the EUR/USD remains near its daily lows, with the hourly chart showing that during its latest advance, sellers surged around the 100 SMA."
"In the same chart, the technical indicators are losing their bearish potential near oversold levels, but are far from suggesting the pair may change course. In the 4 hours chart, however, the bearish momentum remains strong, with the technical indicators heading sharply lower into the red and the price well below a now flat 20 SMA."