Forex Trading: 10 January 2014
European Central Bank President Mario Draghi pledged to keep interest rates low for a prolonged period of time in order to help the sluggish recovery in the Eurozone.
That offered the euro the chance of a slight rebound versus the dollar, with the currency pair gaining 31 points to $1.3606.
FX investors also remained on the sidelines as they waited for today's Non-Farm Payrolls report.
Forex Trading: 09 January 2014
The unemployment rate in the Eurozone remained at a record 12.1%
during November as officials struggle to increase the pace of recovery.
At the same time, Eurozone retail sales did rise by more than forecast but the pessimism surrounding the job sector, especially for the young, had the upper hand.
As a result, the euro dropped by 43 points against the dollar, closing at $1.3573 ahead of today's ECB interest rate meeting.
Forex Trading: 08 January 2014
A fall in Eurozone CPI figures for December from 0.9% to 0.8% renewed concerns that the common area is facing deflation risks.
Consequently, the euro lost 15 points against the dollar, with the currency pair
closing at $1.3614.
The ECB remains under growing pressure to act should the situation deteriorate further, although it should be noted that last month's fall in inflation only reversed November's rise.
Forex Trading: 07 January 2014
Services in the Eurozone surprisingly expanded for a fifth consecutive month, sparking a slight rebound in the common currency and seeing the euro/dollar pair close 35 points higher at $1.3627.
At the same time, fears of an imminent dip into deflation were eased by a small rise in Eurozone CPI numbers for November, albeit with expectations remaining below the ECB's ceiling of 2%.
Forex Trading: 06 January 2014
The euro continued its slump against the US dollar, losing 88 points to $1.3582 as investors expect tapering to carry on throughout this year.
The Eurozone inflation report will be closely watched tomorrow as forex
market reaction may offer a few hints on the ECB's next move.
Towards the end of the week, the ECB interest rate meeting on Thursday will be followed by Friday's US Non-Farm Payrolls and these should offer some extra guidance for the currency market.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
By Jonathan Sudaria, 10 January 2014