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2 Jan 2015
EUR lower on weak European PMIs – MP
FXStreet (Barcelona) - Kenny Fisher, Currency Analyst at Market Pulse, notes that consensus forecasts that the EUR will continue to lose ground in the Q1 2015 due to Eurozone’s economic woes, with the pair trading near the 1.2042 support.
Key Quotes
“EUR/USD has started the New Year with losses, as the pair trades in the mid-1.20 range in the European session. On the release front, European Manufacturing PMIs missed their estimates. Today’s highlight out of the US is the ISM Manufacturing PMI, with the markets expecting a drop in the December reading.”
“The euro began 2014 in great shape, trading at 1.37 against the US dollar. However, EUR/USD tumbled over the course of the year, as the euro finds itself at the 1.21 mark as we head into 2015. This marks the euro’s biggest annual drop since 2005.”
“The Eurozone’s woes have become a familiar broken record of low growth, rock bottom inflation and high unemployment. The ECB cut rates to a record low of 0.05% but this failed to kick-start the economy.”
“The harsh economic reality engulfing the Eurozone means that ECB head Mario Draghi may be forced to use his trump card, quantitative easing, early in 2015. This step would further weaken the wobbly euro, and analysts are forecasting that the currency will continue to lose ground in the first quarter of 2015.”
“EUR/USD posted losses in the Asian session, testing support at 1.2042. The pair is unchanged in the European session.”
“On the downside, 1.2042 is under strong pressure. Will the pair break below this support level? 1.1926 is stronger. 1.2143 has strengthened in resistance as the pair trades at lower levels.”
Key Quotes
“EUR/USD has started the New Year with losses, as the pair trades in the mid-1.20 range in the European session. On the release front, European Manufacturing PMIs missed their estimates. Today’s highlight out of the US is the ISM Manufacturing PMI, with the markets expecting a drop in the December reading.”
“The euro began 2014 in great shape, trading at 1.37 against the US dollar. However, EUR/USD tumbled over the course of the year, as the euro finds itself at the 1.21 mark as we head into 2015. This marks the euro’s biggest annual drop since 2005.”
“The Eurozone’s woes have become a familiar broken record of low growth, rock bottom inflation and high unemployment. The ECB cut rates to a record low of 0.05% but this failed to kick-start the economy.”
“The harsh economic reality engulfing the Eurozone means that ECB head Mario Draghi may be forced to use his trump card, quantitative easing, early in 2015. This step would further weaken the wobbly euro, and analysts are forecasting that the currency will continue to lose ground in the first quarter of 2015.”
“EUR/USD posted losses in the Asian session, testing support at 1.2042. The pair is unchanged in the European session.”
“On the downside, 1.2042 is under strong pressure. Will the pair break below this support level? 1.1926 is stronger. 1.2143 has strengthened in resistance as the pair trades at lower levels.”