EUR/USD tumbles to lows on Draghi, 1.1800 mark now at risk

Haresh Menghani FXStreet

• ECB upgrades growth & inflation outlook through 2020.
• Bulls seemed unimpressed as the majority wants open-ended QE.
• Upbeat US macro data boosts USD and adds to the downward pressure.

As the ECB presser got underway, the EUR/USD pair gained some traction and refreshed fresh multi-day tops during the early NA session.

The pair caught some fresh bids after the ECB upgraded its economic growth forecast for 2017/18/19. According to the latest projections, the region's GDP growth for 2017 is now seen at 2.4% as compared to 2.2% seen in September. For 2018, 2019 and 2020, economic growth forecast stood at 2.3%, 1.9% and 1.7% respectively.

The central bank also revised its inflation outlooks for 2017/18/19/20, but the upward revision was less than expected by the market participants. The ECB President Mario Draghi also reiterated that a downside risk for inflation might come from foreign exchange movements, which further contributed towards capping any additional gains for the shared currency.

Moreover, today's better-than-expected US macro data - monthly retail sales and weekly jobless claims, provided some immediate respite for the US Dollar bulls, with the pair reversing around 40-pips from session tops to currently trading around the 1.1810 region, or session lows.

Technical levels to watch

Immediate support remains near the 1.1800 handle, below which the pair is likely to slide back to 1.1765 horizontal support before eventually dropping to 1.1740 level.

On the upside, mid-1.1800s now becomes immediate resistance, above which the pair is likely to aim towards reclaiming the 1.1900 handle.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD extends slide to fresh 2026-low near 1.3150

GBP/USD resumes its downside in the second half of the day on Wednesday and trades at its lowest level since November 2025 near 1.3150. The pair remains vulnerable amid a broadly firmer US Dollar and chaotic UK political environment. The focus is now on BoE-speak for further trading impetus.

EUR/USD slumps to new yearly low below 1.1350

EUR/USD stays under bearish pressure and trades at its lowest level in a year below 1.1350 on Wednesday. The pair remains vulnerable to further declines amid a bullish US Dollar, which continues to draw support from hawkish Fed bets and US-Iran peace deal uncertainty.

Gold closes in on $4,000 on persistent USD strength

Gold remains under persistent selling pressure and trades at its lowest level since November near $4,000 on Wednesday, losing more than 2.5% on the day. Hawkish Fed pricing, broad-based US Dollar strength and the uncertainty surrounding the US-Iran peace agreement make it difficult for the precious metal to find a foothold.

Crypto Today: Bitcoin, Ethereum, XRP trade under pressure as September Fed rate-hike odds increase

Bitcoin is trading between $62,000 and $63,000 at the time of writing on Wednesday, weighed down by headwinds stemming from macroeconomic uncertainty and geopolitical tensions in the Middle East.

5.90% to 5.45%: Why the Pound ignored the bond market’s relief rally

Keir Starmer resigned on Monday, and the Pound barely moved. That near-silence is the tell. Sterling's real driver these past four months has not been the prime minister, nor the left-leaning frontrunner lining up to replace him, but the long end of the gilt curve, which answers to a force no British politician controls.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.