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4 Sep 2014
Session Recap: Whatever it push... the Euro falls the most in 3 years
FXStreet (San Francisco) - The EUR/USD declined below the 1.3000 area for first time since 2013 after logging its biggest single day drop since 2011. The ECB cut interest rates and Mario Draghi announced combined ABS and covered bond buying program to begin next month.
"Draghi stopped short of QE but he brought the rest of his arsenal, cutting rates and announcing private asset purchases," commented Jamie Coleman from FXBeat. "Which combined with TLTRO should push the ECB balance sheet back up above EUR 3 trln."
In addition, ECB's Nowotny tried to signal currency market to weaken Euro to boost exports as the ECB is worried about Q2 GDP figures.
Currently, EUR/USD is trading at 1.2941, down 1.59% on the day, having posted a daily high at 1.3155 and low at 1.2920. The hourly FXStreet OB/OS Index is showing oversold conditions, alongside the FXStreet Trend Index which is slightly bearish.
The GBP/USD extended declines for third day in a row and after 310-pip drop in September, the Cable is now testing the 1.6330 area. Currently, GBP/USD is trading at 1.6332, down -0.78% on the day, having posted a daily high at 1.6467 and low at 1.6332.
Main headlines in the American session
ECB cuts rates and surprises markets
http://www.fxstreet.com/news/forex-news/article.aspx?storyid=0622dd81-6c5a-45bd-8d2a-0592bbbc8875
August 2014 ADP employment report 204k vs 220k exp
US July trade deficit $40.5B vs $42.4B expected
United States Initial Jobless Claims came in at 302K, above forecasts (300K) in August 29
ECB cuts rates and announces ABS purchases to fight low inflation
US stocks eased earlier gains and closed negative; EUR/USD below 1.30
"Draghi stopped short of QE but he brought the rest of his arsenal, cutting rates and announcing private asset purchases," commented Jamie Coleman from FXBeat. "Which combined with TLTRO should push the ECB balance sheet back up above EUR 3 trln."
In addition, ECB's Nowotny tried to signal currency market to weaken Euro to boost exports as the ECB is worried about Q2 GDP figures.
Currently, EUR/USD is trading at 1.2941, down 1.59% on the day, having posted a daily high at 1.3155 and low at 1.2920. The hourly FXStreet OB/OS Index is showing oversold conditions, alongside the FXStreet Trend Index which is slightly bearish.
The GBP/USD extended declines for third day in a row and after 310-pip drop in September, the Cable is now testing the 1.6330 area. Currently, GBP/USD is trading at 1.6332, down -0.78% on the day, having posted a daily high at 1.6467 and low at 1.6332.
Main headlines in the American session
ECB cuts rates and surprises markets
http://www.fxstreet.com/news/forex-news/article.aspx?storyid=0622dd81-6c5a-45bd-8d2a-0592bbbc8875
August 2014 ADP employment report 204k vs 220k exp
US July trade deficit $40.5B vs $42.4B expected
United States Initial Jobless Claims came in at 302K, above forecasts (300K) in August 29
ECB cuts rates and announces ABS purchases to fight low inflation
US stocks eased earlier gains and closed negative; EUR/USD below 1.30