4 Mar 2015
Session Recap: EUR/USD hits multi-year lows ahead of ECB
FXStreet (Córdoba) - The dollar strengthened versus its European peers on Wednesday, helped by a strong ISM services reading.
The euro lost more than 100 pips throughout the day and hit fresh 11-year lows versus the dollar as loss of the January’s floor accelerated the fall. EUR/USD bottomed out at 1.1061 before finding support and stabilizing at the lower end of the range.
The euro has been under pressure this week, making lower lows on a daily basis, despite strong Eurozone data. On Thursday, the European Central Bank will meet. Although no new measures are expected, Mario Draghi’s press conference at 13:30 GMT will be closely followed for details of the bond-buying programme (QE) announced in January.
Meanwhile, USD/CHF reached a fresh 7-week high of 0.9682 during the New York session amid reports, that were later denied, that the Swiss Finance Minister thinks a new EUR/CHF floor should be considered.
GBP/USD broke below 1.5300 and printed a 3-week low of 1.5250, with the pound on the back foot following disappointing UK data.
The Fed released the Beige Book survey, which showed US economic activity continued to expand across the country from early January to mid-February, although bad weather, a stronger dollar and lower oil prices hurt some sectors.
The Canadian dollar benefited from Bank of Canada decision to remain on hold, dragging USD/CAD to a 6-day low of 1.2405. AUD/USD failed to sustain intraday gains and it has spent the last hours in a range around 0.7820.
Elsewhere, oil shrugged-off inventories data and rose to a 2-week high of $52.75 a barrel, while gold fell below $1,200 an ounce.
US stocks finished lower for second day in a row. The DJIA lost 0.6%, the S&P 500 fell 0.4% and the Nasdaq dropped 0.3%.
The euro lost more than 100 pips throughout the day and hit fresh 11-year lows versus the dollar as loss of the January’s floor accelerated the fall. EUR/USD bottomed out at 1.1061 before finding support and stabilizing at the lower end of the range.
The euro has been under pressure this week, making lower lows on a daily basis, despite strong Eurozone data. On Thursday, the European Central Bank will meet. Although no new measures are expected, Mario Draghi’s press conference at 13:30 GMT will be closely followed for details of the bond-buying programme (QE) announced in January.
Meanwhile, USD/CHF reached a fresh 7-week high of 0.9682 during the New York session amid reports, that were later denied, that the Swiss Finance Minister thinks a new EUR/CHF floor should be considered.
GBP/USD broke below 1.5300 and printed a 3-week low of 1.5250, with the pound on the back foot following disappointing UK data.
The Fed released the Beige Book survey, which showed US economic activity continued to expand across the country from early January to mid-February, although bad weather, a stronger dollar and lower oil prices hurt some sectors.
The Canadian dollar benefited from Bank of Canada decision to remain on hold, dragging USD/CAD to a 6-day low of 1.2405. AUD/USD failed to sustain intraday gains and it has spent the last hours in a range around 0.7820.
Elsewhere, oil shrugged-off inventories data and rose to a 2-week high of $52.75 a barrel, while gold fell below $1,200 an ounce.
US stocks finished lower for second day in a row. The DJIA lost 0.6%, the S&P 500 fell 0.4% and the Nasdaq dropped 0.3%.