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2 Dec 2014
EUR/USD drops further to 1.2410
FXStreet (Edinburgh) - The weakness around the single currency is picking up pace now, with EUR/USD slipping back below 1.2420.
EUR/USD softer, eyes on ECB
Spot is accelerating its intraday leg lower, currently posting weekly lows in the 1.2415/10 band amidst a generalized bid tone from the US dollar. There is nothing of note from the euro area docket, with Producer Prices contracting 0.4% inter-month during October, missing forecasts. Ahead in the week, the ECB meeting on Thursday and US Payrolls on Friday will be the main events for the pair. Analyst Derek Halpenny at BTMU assessed “further strength in US jobs data will increase speculation that FOMC communications could be ramped up in Q1 signalling the increased probability of rate increases beginning arpund mid-2015. So while there is of EURUSD squeezing higher into year-end we maintain our bearish view for EURUSD in 2015 and indeed, Q1 might be when we see the largest move lower”.
EUR/USD levels to watch
As of writing the pair is down 0.43% at 1.2417 and a breach of 1.2402 (low Nov.25) would open the door to 1.2358 (2014 low Nov.7) and then 1.2342 (low Aug.21 2012). On the upside, the initial hurdle aligns at 1.2507 (high Dec.1) followed by 1.2520 (30-d MA) and then 1.2524 (high Nov.27).
EUR/USD softer, eyes on ECB
Spot is accelerating its intraday leg lower, currently posting weekly lows in the 1.2415/10 band amidst a generalized bid tone from the US dollar. There is nothing of note from the euro area docket, with Producer Prices contracting 0.4% inter-month during October, missing forecasts. Ahead in the week, the ECB meeting on Thursday and US Payrolls on Friday will be the main events for the pair. Analyst Derek Halpenny at BTMU assessed “further strength in US jobs data will increase speculation that FOMC communications could be ramped up in Q1 signalling the increased probability of rate increases beginning arpund mid-2015. So while there is of EURUSD squeezing higher into year-end we maintain our bearish view for EURUSD in 2015 and indeed, Q1 might be when we see the largest move lower”.
EUR/USD levels to watch
As of writing the pair is down 0.43% at 1.2417 and a breach of 1.2402 (low Nov.25) would open the door to 1.2358 (2014 low Nov.7) and then 1.2342 (low Aug.21 2012). On the upside, the initial hurdle aligns at 1.2507 (high Dec.1) followed by 1.2520 (30-d MA) and then 1.2524 (high Nov.27).