Intra-Day Market Moving News and Views EUR/USD

Intra-Day Market Moving News and Views

15 Oct 2014 07:51GMT

EUR/USD - ....... Although euro rebounded after extending decline from yesterday's high of 1.2769 to 1.2625 in Asia n price edged higher in European morning after data showed German inflation in-line with expectations, renewed selling interest at 1.2663 checked gain adn price retreated to 1.2639.

At present, offers are touted at 1.2670/80 and more above with stops emerging above 1.2700.
On the downside, bids are placed at 1.3610-00 with stops below 1.2600 and more near 1.2580.

Earlier mentioned triple whammy of bearish news which hit the euro on Tuesday, WSJ reported another piece of euro-negative news worth noting.
A stand off among the ECB, Germany n other EZ governments is holding back Europe's quest to revive its flagging economic recovery.
The tensions, brewing for months, have sharpened this month as eurozone economic data have deteriorated n threaten to prevent a coherent policy response as Europe's economy slides toward a 3rd recession in 6 years.

A growing number of policy makers n advisers say a coordinated push is now needed, comprising aggressive new ECB actions, higher investment spending by Germany n EU institutions, n bolder economic overhauls in France & Italy. Even such a coordinated push might not be enough to return the eurozone to faster growth. But in its absence, the risks of a near-term recession n longer-term decline are rising, many argue.

German Chancellor Angela Merkel's gov't on Tue rejected calls for it to boost spending n delay its goal of a balanced budget next year amid mounting evidence of a slowdown in Europe?s biggest economy. Officials in Berlin also said they see no need for the ECB to try out new n uncertain measures.

Some ECB officials fear quantitative easing would be less effective in the eurozone than in the U.S. or U.K., because of the currency bloc's fragmented financial system, its reliance on bank loans rather than capital markets, n the fact that eurozone sovereign bond yields are mostly low already. But the ECB may have little choice but to try if inflation expectations continue to dwindle n the risk of outright deflation increases.