EUR/USD: At 33-month low as traders dial up ECB rate cut bets


  • EUR/USD is trading at the lowest level since May 2017. 
  • Eurozone growth concerns and dovish ECB expectations seem to be hurting the euro. 

EUR/USD has dropped to 33-month lows on dovish European Central Bank (ECB) expectations. 

The pair is currently trading near 1.0865 – the lowest level since May 2017 reached on Wednesday. 

ECB rate cut bets rise

Eurozone’s industrial output suffered its steepest drop in four years in December, the official data released on Wednesday showed

Further, German manufacturing recession looks far from over with factory orders falling by 2.1% in December. 

As a result, money markets are now pricing about six basis points of rate cut by the end of 2020, versus a zero probability seen a month earlier, according to Bloomberg. 

Alongside that, the US dollar is attracting haven flows amid coronavirus fears. Also, the US economy is doing relatively well, as highlighted by last week’s Nonfarm Payrolls report. 

All in all, the path of least resistance looks to be on the downside. The common currency may continue to lose altitude, having found acceptance under the key support at 1.0879. The downside may gather pace if the US Consume Price Index (CPI) for January, due at 13:30 GMT, beats estimates by a big margin, forcing markets to price out prospects of additional easing by the Federal Reserve. The pair may also take cues from the final German CPI for January, scheduled for release at 07:00 GMT. 

Technical levels

EUR/USD

Overview
Today last price 1.087
Today Daily Change -0.0005
Today Daily Change % -0.05
Today daily open 1.0875
 
Trends
Daily SMA20 1.1025
Daily SMA50 1.1089
Daily SMA100 1.1068
Daily SMA200 1.1119
 
Levels
Previous Daily High 1.0926
Previous Daily Low 1.0865
Previous Weekly High 1.1089
Previous Weekly Low 1.0942
Previous Monthly High 1.1225
Previous Monthly Low 1.0992
Daily Fibonacci 38.2% 1.0888
Daily Fibonacci 61.8% 1.0903
Daily Pivot Point S1 1.0852
Daily Pivot Point S2 1.0828
Daily Pivot Point S3 1.0792
Daily Pivot Point R1 1.0912
Daily Pivot Point R2 1.0949
Daily Pivot Point R3 1.0972

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD challenges weekly lows after mixed Durable Goods Orders

US Durable Goods Orders were up a measly 0.4% in August, missing expectations of 1.0%, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Equities bounce from lows, but the dollar maintains its strength.

EUR/USD News

GBP/USD loses 1.2700 as the dollar keeps rallying

GBP/USD approaches its weekly low at 1.2674 as demand for the American currency extends into the final trading session of the week. Hopes for a UK trade deal with the EU doing little for Sterling.

GBP/USD News

Gold: Downside appears more compelling in the NFP week ahead

Gold (XAU/USD) shed about 4.5% in the past week, delivering a weekly closing below the August month low of $1863. The yellow metal booked the first weekly loss in three, with the risks skewed to the downside in the US Non-Farm Payrolls (NFP) week ahead.  

Gold News

Breaking: ​​​​​​​The IRS makes it hard to pretend you don’t have Bitcoin

The cryptocurrency holders might have a hard time trying to hide their Bitcoins or other digital assets. IRS considers changing the standard 1040 form by including a bold question on the front page:  At any time during 2020, did you sell, receive, send, exchange, or otherwise acquire any financial interest in any virtual currency? 

Read more

WTI moves back to flat and once again trades above $40 per barrel

It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures