EUR/USD breaks below 1.1200

FXStreet (Edinburgh) - The European currency is now losing the grip vs. the dollar, dragging EUR/USD back below the 1.1200 mark.

EUR/USD after US publications

The pair dropped further after the US consumer sentiment gauged by the Reuters/Michigan index came in above expectations for the present month at 95.4 vs. 94.0 forecasted. Further data showed Pending Home Sales expanding 1.7% on a monthly basis in January, a tad lower than the consensus at 1.8%; over the last twelve months, home sales rose 8.4%.

That was all from the data front in the US, while speeches by Fed’s Dudley and Fischer will soon follow.

EUR/USD relevant levels

As of writing the pair is losing 0.02% at 1.1195 with the next support at 1.1100 (psychological level) ahead of 1.1098 (11-year low Jan.26) and then 1.1047 (low Sep.8 2003). On the flip side, a breakout of 1.1332 (10-d MA) would target 1.1349 (21-d MA) en route to 1.1380 (high Feb.26).

EUR/USD stablized into the NA opening hours - Scotiabank

Camilla sutton, Chief FX strategist at Scotiabank explained that after yesterday's USD induced EUR weakness, driven by hawkish Fed comments and stronger than expected core CPI, today has EUR stabilized.
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BoE unconcerned about UK’s building deflationary cycle – Rabobank

Jane Foley, Senior Currency Strategist at Rabobank, notes that with UK CPI set to fall further in coming months and the BoE acknowledging below zero inflation rate as being “likely” in spring, the comments from the BoE members and Carney’s implies that the central bank is not concerned about the building deflationary cycle.
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