25 Mar 2014
Session Recap: Believers... EUR/USD bounces hard at 1.3750
FXStreet (San Francisco) - US economy is full of believers as consumer confidence posted its highest level since January 2008 at 82.3, well above expectations. It fueled stocks investors and overall the USD; However it seems to be proved that EUR/USD won't fall at all.
ECB officials were trying to push down the Euro, including Mario Draghi who repeated that the bank has tools available if needed. The EUR/USD fell throughout the European session from 1.3845 to test nearly 20-day low at 1.3750. But the pair bounced hard at this level and it recovered in just a hour all the previous decline.
"The Central Bank leader hit the wires, mostly repeating what he said a couple weeks ago, regarding tools available if needed (read, negative rates and/or quantitative easing) but overall exhibiting his usual confidence in the future,” FXStreet chief analyst Valeria Bednarik said. “Early menace from Weidmann was quickly overpowered, with the pair bouncing back towards its daily high of 1.3846."
The EUR/USD certainly closed negative on the day, but it recovered the 1.3800 area and left a message to the currency market: Think twice about the EUR/USD dovishness. Pair closed the day at 1.3825.
The GBP/USD advanced for second day as the cable extended recovery from 1.6455, yesterday low, to close at 1.6530. The USD/JPY moved to a high of 102.50 and a low of 102.10 but it closed unchanged on the day at 102.25.
Main headlines in the American session
ECB’s Makuch says there are higher deflation risks in Europe and a number of ECB members are ready to take decisive steps
US S&P/Case-Shiller Home Price Indices (YoY) came in at 13.2% disappointing expectations (13.3%) in January
US Housing Price Index (MoM) registered at 0.8% to beat expectations (0.7%) in January
US Richmond Fed Manufacturing Index registered at -7, missing forecasts (-1) in March
US New Home Sales Change (MoM) came in at -3.3% to beat expectations (-4.9%) in February
US March consumer confidence 82.3 vs 78.5 expected
ECB’s Weidman says eurozone deflation risk ‘very low’
Wall Street recovers the tone and posts modest gains on Tuesday
ECB officials were trying to push down the Euro, including Mario Draghi who repeated that the bank has tools available if needed. The EUR/USD fell throughout the European session from 1.3845 to test nearly 20-day low at 1.3750. But the pair bounced hard at this level and it recovered in just a hour all the previous decline.
"The Central Bank leader hit the wires, mostly repeating what he said a couple weeks ago, regarding tools available if needed (read, negative rates and/or quantitative easing) but overall exhibiting his usual confidence in the future,” FXStreet chief analyst Valeria Bednarik said. “Early menace from Weidmann was quickly overpowered, with the pair bouncing back towards its daily high of 1.3846."
The EUR/USD certainly closed negative on the day, but it recovered the 1.3800 area and left a message to the currency market: Think twice about the EUR/USD dovishness. Pair closed the day at 1.3825.
The GBP/USD advanced for second day as the cable extended recovery from 1.6455, yesterday low, to close at 1.6530. The USD/JPY moved to a high of 102.50 and a low of 102.10 but it closed unchanged on the day at 102.25.
Main headlines in the American session
ECB’s Makuch says there are higher deflation risks in Europe and a number of ECB members are ready to take decisive steps
US S&P/Case-Shiller Home Price Indices (YoY) came in at 13.2% disappointing expectations (13.3%) in January
US Housing Price Index (MoM) registered at 0.8% to beat expectations (0.7%) in January
US Richmond Fed Manufacturing Index registered at -7, missing forecasts (-1) in March
US New Home Sales Change (MoM) came in at -3.3% to beat expectations (-4.9%) in February
US March consumer confidence 82.3 vs 78.5 expected
ECB’s Weidman says eurozone deflation risk ‘very low’
Wall Street recovers the tone and posts modest gains on Tuesday