Talking-Forex.com
Talking-Forex.com
Today’s major FX action was all prompted by one sentence in the ECB press conference as president Draghi stated that no further rate cuts were required (at the present time). EUR/USD was already recovering from the 1.0820 lows posted in the wake of the rate cuts and extended APP, tipping 1.0900, but after the above revelation, the spot rate ripped higher, gapped through the 1.1000’s to hit an initial high of 1.1115. Highs have since been extended through 1.1150, but the mayhem was spread further afield as Cable took out 1.4174/71 support, only to turn higher and trade through the 1.4282 highs and take out 1.4300 thereafter. USD/JPY was the other bid mover, as EUR/JPY stood its ground to allow the spot rate to test 114.00+ levels. Resistance ahead of 114.55 held firm, and late in the day we are back in the mid 113.00’s with the prospect of a move back into the 112.00’s now likely as the USD index is now under the cosh. These were the 2 main pairs impacted, with the commodity currencies relatively immune – AUD suffering a minor setback into the mid .7400’s. CAD trade was mixed, but source reports that the March 20 meeting between OPEC and non OPEC members will be effectively delayed. USD/CAD had tested 1.3220 support again but tipped 1.3300 since. An extremely volatile session, with markets still trying to recover into the London fix.
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