EUR/USD falls to a fresh nine-year low after the ECJ ruling

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - The EUR/USD pair fell to fresh nine-year low as the markets see the European Court of Justice ruling in favor of the ECB’s OMT program as a green signal for sovereign QE in the Eurozone.

The pair now trades 0.30% lower at 1.1736 levels, down from the high of 1.1811 levels hit ahead of the ECJ court ruling. The single currency came under pressure on ever increasing possibility of a sovereign QE in the Eurozone. Earlier today, Reuters reported that the ECB President Mario Draghi expressed readiness to buy government bonds in his interview to the German newspaper Die Ziet. However, the selling resumed after the ECJ appeared to have ruled in favor of Mario Draghi and the members of the ECB that support both programs – OMT and Sovereign QE. The ruling said as long as the ECB is purchasing bonds on the secondary market, bond purchases are neither breaking the rules of the treaty or outside of its mandate.

EUR/USD Technical Levels

The immediate support is seen at 1.1735, under which losses could be extended to 1.1660 levels. Meanwhile, resistance is seen at 1.18 and 1.1860 levels.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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