Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Currencies  >  Euro / US Dollar (EUR/USD)    EURUSD   

My previous session
Most popular
Analysis summaryMarketScreener Strategies

Monetary adjusments

share with twitter share with LinkedIn share with facebook
share via e-mail
05/14/2013 | 06:32pm

The greenback is getting back its color while the U.S. labor market shows signs of improvement and the ECB may be soon more accommodative.

After the recent cut of the central bank’s key rate, Mario Draghi, reiterated its willingness to closely monitor indicators of the Old Continent to act again if necessary. Probably motivated by the slowdown of inflation (1.2%) which is moving away from the target level (around 2%), two members of the Executive Board of the ECB, the French economist Benoît Coeuré and President of the Bank of Italy Ignazio Visco, have also made similar statements, leaving the door open to a more accommodative policy.

On the American side, the strength of the last monthly U.S. employment report, which shows a further decline in unemployment to the lowest level since December 2008 (7,5% in April against a peak beyond 10% in late 2009), encourages conversely officials to get tough. Thus, Charles Plosser, who heads the Philly Fed, wants the institution to slow down its assets purchases while the Wall Street Journal indicates that the central bank would have developed a strategy of gradual decrease in liquidity infusion.

Finally, these prospects of monetary policy adjustments drive some tradeoffs that penalize the single currency, and speculations about a possible increase in dollar reserves of China support the U.S. dollar, as well.

Graphically, after a triple top around USD 1.32, the Euro broke down 1.30 in a bearish dynamic. We are now bearish and aim a comeback towards 1.2773, unprecedented level since the beginning of April.

Mathieu Burbau
© Zonebourse.com 2013
share with twitter share with LinkedIn share with facebook
share via e-mail

Disclaimer: The information, charts, data, views, or comments provided by SURPERFORMANCE SAS are intended for investors who have the necessary knowledge and experience to understand and appreciate the information contained within. These items are disseminated for personal reference only. They do not constitute an offer or solicitation to buy or sell financial products or services, nor an investment advice.
The use of the information disseminated takes place under the investor's sole responsibility, without recourse against SURPERFORMANCE SAS. SURPERFORMANCE SAS will not be liable, whether in contract, in tort, under any warranty, for errors, omissions, improper investments, or adverse evolution of markets.

Duration : Period : Day
Euro / US Dollar (EUR/USD) Technical Analysis Chart | MarketScreener
Duration : Period : Week
Euro / US Dollar (EUR/USD) Technical Analysis Chart | MarketScreener