FXstreet.com (San Francisco) - The euro fell to a fresh two-year low against the dollar Thursday, extending as low as $1.2166 before closing the NA session at $1.2202 vs. $1.2236 at the daily open.
The dip was a result of depressed tolerance for risk amid concern that major central banks are not being as aggressive as is necessary to effectively shore up the global economy.
In the current Asian session, all eyes will be on the release of China’s second-quarter GDP growth figures. NAB notes in a recent report that “Comments from Premier Wen both at the weekend and on Wednesday (in the latter suggesting than an investment pick-up was now needed) had, earlier in the week, aggravated fears that annual growth might have significantly undershot 8% in the June quarter (consensus 7.9% for the YoY figure).” So, traders will be watching closely for further signs of economic deterioration in China.
From a technical standpoint, as Valeria Bednarik, Chief Analyst at FXstreet.com observes, “price needs at least to regain the 1.2250 area, to be able to trigger limited upside corrections this Friday.” The analyst adds that, in the meantime, a break below 1.2140 is required to entice a deeper sell-off towards the 1.1870 area, “next big target of current trend,” she says.
The dip was a result of depressed tolerance for risk amid concern that major central banks are not being as aggressive as is necessary to effectively shore up the global economy.
In the current Asian session, all eyes will be on the release of China’s second-quarter GDP growth figures. NAB notes in a recent report that “Comments from Premier Wen both at the weekend and on Wednesday (in the latter suggesting than an investment pick-up was now needed) had, earlier in the week, aggravated fears that annual growth might have significantly undershot 8% in the June quarter (consensus 7.9% for the YoY figure).” So, traders will be watching closely for further signs of economic deterioration in China.
From a technical standpoint, as Valeria Bednarik, Chief Analyst at FXstreet.com observes, “price needs at least to regain the 1.2250 area, to be able to trigger limited upside corrections this Friday.” The analyst adds that, in the meantime, a break below 1.2140 is required to entice a deeper sell-off towards the 1.1870 area, “next big target of current trend,” she says.
