EUR/USD sidelines above 1.1300

Pablo Piovano FXStreet

FXStreet (Edinburgh) - The decline in EUR/USD remains well and sound on Friday, as markets continue to digest the larger than expected QE programme launched yesterday by the ECB.

EUR/USD supported around 1.1300

The ECB announcements sparked a sharp sell of from the upper-1.1500s to the current area in levels just above 1.1300 the figure. Recall that the European Central Bank surprised investors on Thursday announcing an expanded bond buying programme, involving monthly purchases of ABS and covered bonds worth €60 billion. The programme is scheduled to start in March and will last until September 2016, or until the central bank sees consumer prices are heading towards its 2% inflation target.

Today’s docket in the euro bloc will see the preliminary prints of the manufacturing and services PMIs, whereas in the US economy Existing Home Sales and Markit’s PMI will take centre stage.

EUR/USD key levels

At the moment the pair is losing 0.21% at 1.1336 with the next support at 1.1315 (low Jan.23) followed by 1.1238 (low Sep.19 2003) and then 1.1227 (low Sep.18 2003). On the flip side, a breakout of 1.1360 (hourly high Jan.22) would expose 1.1393 (hourly high Jan.22) and then 1.1432 (hourly high Jan.22).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.