Thursday, March 3, 2011

EUR/USD

EUR/USD has had a quiet session, although it has lost some ground amid mild profit-taking ahead of the European Central Bank meeting on Thursday.

EUR/USD has fallen to a low of 1.3846 during the Asian session, after closing in NY around 1.3870. EUR/USD is currently trading at 1.3855/60, slightly lower since opening.

Traders are expecting the ECB will move toward an eventual rate hike, so there is risk the hegemonic currency weakens if they get disappointed.

In a deeper analysis, the Reuters Insiders Team reported, "Bullish on the Euro, traders bet the European Central Bank will signal a rate hike later today. They are expecting Jean-Claude Trichet to sharpen his anti-inflation rhetoric as oil prices continue to soar. Immediate resistance is seen at 1.3900 where it has option related offers but further resistance is seen at 1.3947".

source: http://www.fxstreet.com


16 comments:

  1. thanks for the info, as always

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  2. oh always good to read your blog.

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  3. I guess it will be for a bit, EUR is always on top.

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  4. that chart doesnt look steady at all

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  5. Do you think the Euro will fall any farther than it has?

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  6. it's nice that things are not so volatile.

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  7. Oil prices will damage EUR value

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  8. Thanks for another informative post!

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  9. I find it ridiculous that people calculate this everyday and it's someone's job.

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  10. The sad part is, I don't think oil prices are likely to go down soon. Or ever again for that matter...

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  11. Kush they don't just calculate. They make millions of dollars every day...

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