26 Aug 2015
EUR/USD bouncing back in volatility
FXStreet (Guatemala) - EUR/USD is choppy, in a volatile market and has resumed the downside from session highs of 1.1561 and is back to test the 1.15 handle.
EUR/USD dropped to test the 1.15 handle and caught a bounce back to 1.1520's and thrpugh the the 1.1530's at time of writing. The market is volatile and can be expected to continue as being so while uncertainty wreaks havoc this week in the wake of investors running for safe havens as China continues to report bad news.
The latest developments were that the PBoC came to the table and intervened. In addition to PBOC injecting 150bn yuan via 7-day reverse repos yesterday, the PBoC cut their RRR by 50bps to 18.00% with additional cuts for individual sectors. The Central Bank also cut the deposit rate by 25bps to 1.75% and lending interest rates by 25bps to 4.60%.
The greenback found some temporary relief when the US data overnight came out with the highest US Consumer Confidence Index since January coming in at 101.5 vs consensus 93.4 along with better than expected Services PMI arriving in at 55.2 vs. consensus at 55.1.
However, the stock markets that had been recovering could not sustain the upside and dead cat bounce caused mayhem once again in the closing hour of Wall Street, propelling EUR/USD higher once again. Attention back on the Shanghai Composite Index Attention will now be on the Shanghai Composite Index of shares once again. Then, for tomorrow, staying with the key US market, US Durable Goods is scheduled along with more Fed talk from Dudley tomorrow.
EUR/USD is technically on the bid still and has sights for the 55 week ma at 1.1700, and the 2014- 2015 downtrend is also located there at 1.1704. The downside has support at 1.1400 and 1.1320 ahead of the key 1.1098 support line.
EUR/USD dropped to test the 1.15 handle and caught a bounce back to 1.1520's and thrpugh the the 1.1530's at time of writing. The market is volatile and can be expected to continue as being so while uncertainty wreaks havoc this week in the wake of investors running for safe havens as China continues to report bad news.
The latest developments were that the PBoC came to the table and intervened. In addition to PBOC injecting 150bn yuan via 7-day reverse repos yesterday, the PBoC cut their RRR by 50bps to 18.00% with additional cuts for individual sectors. The Central Bank also cut the deposit rate by 25bps to 1.75% and lending interest rates by 25bps to 4.60%.
The greenback found some temporary relief when the US data overnight came out with the highest US Consumer Confidence Index since January coming in at 101.5 vs consensus 93.4 along with better than expected Services PMI arriving in at 55.2 vs. consensus at 55.1.
However, the stock markets that had been recovering could not sustain the upside and dead cat bounce caused mayhem once again in the closing hour of Wall Street, propelling EUR/USD higher once again. Attention back on the Shanghai Composite Index Attention will now be on the Shanghai Composite Index of shares once again. Then, for tomorrow, staying with the key US market, US Durable Goods is scheduled along with more Fed talk from Dudley tomorrow.
EUR/USD is technically on the bid still and has sights for the 55 week ma at 1.1700, and the 2014- 2015 downtrend is also located there at 1.1704. The downside has support at 1.1400 and 1.1320 ahead of the key 1.1098 support line.