Intra-Day Market Moving New and Views
23 Sep 2014
EUR/USD - ...... The single currency fell to a fresh 14-month low of 1.2816 after ECB Draghi's comments on Mon.
Reuters reported Draghi renewed his plea for governments to undertake more structural reforms to support the euro zone economy.
In his speech to the economic and monetary affairs committee of the European parliament, he said
"courageous structural reforms n improvements in the competitiveness of the corporate sector are key to improving the business environment."
"this would foster the urgently needed investment n create greater demand for credit."
"Structural reforms thus crucially complement the ECB's accommodative monetary policy stance n further empower the effective transmission of monetary policy."
Draghi wants ECB monetary policy stimulus to be accompanied by fiscal stimulus n structural reforms to support the euro zone economy, which is struggling with stagnating growth, very weak inflation n persistently high unemployment.
Euro pares y'day's loss n climbed to intra-day high of 1.2864 on what traders cited as continued short-covering as despite falling to a fresh 14-month trough of 1.2816 in NY morning after ECB Draghi's dovish comments, lack of follow-though selling lifted the pair in NY afternoon n buying continued in thein Asian morning.
Although euro's said rebound fm 1.2816 suggests range trading abv this temporary low wud continue until European open, release of a slew of important euro area eco. data will either send euro to new lows n trigger more short covering rally later in the day. Pay attention to France bus climate n GDP at 06:45GMT, then France Markit mfg & serv. PMIs at 07:00GMT, Germany will release the same data at 07:30GMT followed by the same sata fm EU at 08:00GMT.
Offers are reported at 1.2865/75 with stops abv there, a mixture of more selling interest n stops is touted around 1.2900/05. Initial bids are noted at 1.2830-20 with stops below 1.2815, however, more bids are rumoured at 1.2800.
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