- 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.
|Today last price||1.087|
|Today Daily Change||-0.0005|
|Today Daily Change %||-0.05|
|Today daily open||1.0875|
|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.