30 Apr 2014
EUR/USD muted on FOMC
FXStreet (Edinburgh) - The EUR/USD keeps the upper band of the intraday range around 1.3870 after the release of the FOMC statement.
EUR/USD capped by 1.3880
The 1.3880 level still remains elusive for EUR-bulls despite the auspicious results from the CPI in Euroland for the month of April. The FOMC said the economy and consumer demand are expanding at a faster pace. In addition and in line with market consensus, members’ vote for another $10 billion taper (now at $45 billion) was unanimous. In light of the recent inflation figures in the euro bloc, Camilla Sutton, Chief FX Strategist at Scotiabank, commented, “This combined with increasing evidence that the near term outlook for inflation has fallen and that this is beginning to leak into the medium term outlook should be a major concern for the ECB next week. However, considering the central bank’s historical response pattern it is likely early for the ECB to act”.
EUR/USD levels to watch
As of writing the pair is advancing 0.35% at 1.3861 with the next hurdle at 1.3880 (high Apr.29) ahead of 1.3906 (high Apr.11) and finally 1.3935 (high Mar.19). On the other hand, a break below 1.3771 (low Apr.30) would target 1.3738 (low Apr.8) en route to 1.3729 (100-d MA).
EUR/USD capped by 1.3880
The 1.3880 level still remains elusive for EUR-bulls despite the auspicious results from the CPI in Euroland for the month of April. The FOMC said the economy and consumer demand are expanding at a faster pace. In addition and in line with market consensus, members’ vote for another $10 billion taper (now at $45 billion) was unanimous. In light of the recent inflation figures in the euro bloc, Camilla Sutton, Chief FX Strategist at Scotiabank, commented, “This combined with increasing evidence that the near term outlook for inflation has fallen and that this is beginning to leak into the medium term outlook should be a major concern for the ECB next week. However, considering the central bank’s historical response pattern it is likely early for the ECB to act”.
EUR/USD levels to watch
As of writing the pair is advancing 0.35% at 1.3861 with the next hurdle at 1.3880 (high Apr.29) ahead of 1.3906 (high Apr.11) and finally 1.3935 (high Mar.19). On the other hand, a break below 1.3771 (low Apr.30) would target 1.3738 (low Apr.8) en route to 1.3729 (100-d MA).