8 Dec 2014
EUR/USD awaits ABS Purchase Results
FXStreet (Mumbai) - The single currency appears to have stabilized against the greenback ahead of the European Central Bank’s (ECB) announcement of the last week’s covered bond and Asset Backed Securities (ABS) purchases.
The EUR/USD pair now trades steady near 1.2250 levels, after having declined from 1.23 levels on ECB policy maker Edwald Nowotny’s hint at a possible sovereign bond QE. Markets now await the first round of reporting on ABS purchases. The central bank has purchased about EUR 2.7 billion per week, taking the total to EUR 17.8 billion since purchases began in late October.
Moreover, the analysts are of the opinion that the EUR may weaken if the ABS purchases are very slow, leading to increased bets on a future move to “sovereign QE”.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.2303 and 1.2357 levels. Meanwhile, strong support located at 1.2237 (200-monthly SMA) and 1.2132 (Aug 2012 low).
The EUR/USD pair now trades steady near 1.2250 levels, after having declined from 1.23 levels on ECB policy maker Edwald Nowotny’s hint at a possible sovereign bond QE. Markets now await the first round of reporting on ABS purchases. The central bank has purchased about EUR 2.7 billion per week, taking the total to EUR 17.8 billion since purchases began in late October.
Moreover, the analysts are of the opinion that the EUR may weaken if the ABS purchases are very slow, leading to increased bets on a future move to “sovereign QE”.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.2303 and 1.2357 levels. Meanwhile, strong support located at 1.2237 (200-monthly SMA) and 1.2132 (Aug 2012 low).