Intra-Day Market Moving News and Views
22 Oct 2014 02:26GMT
EUR/USD - ...... Euro is nursing loss in Asia after yesterday's sell off from 1.2840 to as low as 1.2706 in Australia earlier today.
Despite extending Monday's gain to 1.2840 in early European trading, heavy offers at 1.2840 checked intra-day gain and short-term euro bulls unwound their longs.
Breaking Reuters news of ECB was mulling corporate bond purchase as soon as at its December's meeting for such action in early 2015 triggered broad-based selling in euro, price tanked to 1.2745 and despite a brief short-covering bounce to 1.2784, another wave of selling emerged and pressured price to 1.2716 in NY morning.
Euro edged lower to 1.2706 in Australia but talk of bids at 1.2725/00 lifted price in Asian morning.
Yesterday's sell off suggests daily downside bias remains and there has been talk of fairly large stops building below 1.2700 as last Wednesday's rally to 1.2888 after downbeat U.S. retail sales and subsequent sideways trading had lured euro buyers.
Offers are noted at 1.2740/50 and more above with some stops touted above 1.2780. Initial bids are noted at 1.2705-00 with stops below there.
Although euro is expected to remain under pressure on the ECB corporate bond buy plan in Europe, pay attention to release of U.S. inflation data (forecast for annual Sep core CPI is 1.7%).
If actual reading is below estimate, usd may fall broadly as this will dampen prospect of Fed tightening in 2015.
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