Wednesday, November 4, 2015

EUR/USD approaches daily lows on Draghi’s words

FXStreet (Córdoba) - EUR/USD was trading near American session highs that lie at 1.0970, attempting to recover some lost ground but it turned to the downside again as Mario Draghi, European Central Bank president, repeated that the in December there will be a re-examination of the monetary policy.

Draghi again signaled that the door for more stimulus is open and weakened the euro that hit fresh lows versus the pound and commodity currencies.

EUR/USD remains bearish

Currently the pair trades at 1.0945/50, 70 pips below the level it closed yesterday and remains with a bearish tone near daily lows that lie at 1.0934.

“The EUR/USD pair is clearly bearish, ever since the imbalance between both Central Banks (Fed and ECB) became more clear after their respective October meetings, and this latest break below 1.1000 support a continued decline ahead, albeit limited, as investors will be waiting for Friday's US NFP release to define whether they can resume EUR selling”, said Valeria Bednarik, Chief Analyst at FXStreet.

While regarding the Fed speculation is about if it will raise or not rates in December; at the ECB is about what kind of stimulus could be announced. The divergence in monetary policy continues to offset recent economic data from the US and the Eurozone.
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