Euro Weakness Post Draghi Speech
|EURUSD, H1
EURUSD has drifted about 40 pips lower amid a broader ebb in the Euro. A one-week high was left at 1.1367 before the run lower. A key analyst, Action Economics wrote earlier, “We see the pair as remaining in the broader downtrend that’s been in development since late January”. Indeed, the daily 50-period and 20-period moving average was last breached September 23 at 1.1642 and has shown little signs of turning north. Recent US data, not least the warmer readings on CPI and PPI, along with the Fed’s policy guidance following last week’s FOMC meeting, have fanned expectations for a resumption in Fed tightening at December’s policy meeting. This juxtaposes signs of flagging economic growth momentum in the Eurozone, where there are also concerns about the Eurosceptic political movement. Nothing in Mario Draghi’s speech this morning suggested that this trend was coming to an end or even slowing down. S3 now sits below 1.1200.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.