9 Nov 2013
Session recap: Another chapter in the currency war? EUR/USD completes 460 pips 2-week decline
FXstreet.com (San Francisco) - The EUR/USD closed on Friday its eighth negative day in the last ten and a 460 pips decline in the last two weeks from 1.3830 to finish the current week at 1.3365. “Two weeks to give up 4 months of gains from July should be pretty significant”, as FXstreet.com chief analyst Valeria Bednarik said in a recent report.
A surprisingly strong payrolls on Friday increased the risk of the Federal Reserve to begin its plans cuts as soon as December. However, the jobs report revealed an employment boost, but the unemployment rate rose to 7.3% from 7.2%, so, the boost in the October NFP, and its previous month revisions up, could be enough for the Fed tapering soon to come?
The true is that the EUR/USD remains above the 1.3250 tough zone and still far from the 1.3000 area where the pair could switch the sentiment for sure. Today, CFTC data shows that investors cut longs EUR/USD positions by 50%. However and at least for now, the Fed is beating the ECB in terms of the currency war.
"Being 1.3280 a multi month low and the 50% retracement of the latest bullish rally, a break below the level should add to current negative tone, eyeing then next Fibonacci area around 1.3170 as immediate target for next week," Bednarik adds. "Further slides below this last, will likely trigger a selloff continuation towards 1.3000, yet there’s a long road ahead to think of levels below this last."
In other markets, stocks opened the day with the concern of a tapering in December, however, it seems the digestion of the NFP led the indexes to close in a strong note.
Main headlines in the American Session:
US: Nonfarm payrolls soar to 204K in October
Canada: Employment rises 13.2K in October
US: Reuters/Michigan Consumer Sentiment Index down to 72 in November
S&P downgrades EFSF to AA from AA+
Wall Street’s performance: your Friday upbeat
A surprisingly strong payrolls on Friday increased the risk of the Federal Reserve to begin its plans cuts as soon as December. However, the jobs report revealed an employment boost, but the unemployment rate rose to 7.3% from 7.2%, so, the boost in the October NFP, and its previous month revisions up, could be enough for the Fed tapering soon to come?
The true is that the EUR/USD remains above the 1.3250 tough zone and still far from the 1.3000 area where the pair could switch the sentiment for sure. Today, CFTC data shows that investors cut longs EUR/USD positions by 50%. However and at least for now, the Fed is beating the ECB in terms of the currency war.
"Being 1.3280 a multi month low and the 50% retracement of the latest bullish rally, a break below the level should add to current negative tone, eyeing then next Fibonacci area around 1.3170 as immediate target for next week," Bednarik adds. "Further slides below this last, will likely trigger a selloff continuation towards 1.3000, yet there’s a long road ahead to think of levels below this last."
In other markets, stocks opened the day with the concern of a tapering in December, however, it seems the digestion of the NFP led the indexes to close in a strong note.
Main headlines in the American Session:
US: Nonfarm payrolls soar to 204K in October
Canada: Employment rises 13.2K in October
US: Reuters/Michigan Consumer Sentiment Index down to 72 in November
S&P downgrades EFSF to AA from AA+
Wall Street’s performance: your Friday upbeat