Forex Trading: 09 May 2014
We saw the shared currency trading in a daily range of 160 points yesterday, coming within 7 points of the psychologically important $1.40 mark only to plunge later on, closing 71 points down at $1.3833.
The move came after ECB President Mario Draghi's guidance, where he said that policy makers were ready to ease the monetary policy at the next meeting in June.
So much for expectations that it might have happened in May.
Forex Trading: 08 May 2014
The shared currency stayed firmly on course to reach the psychologically important $1.40 mark, putting further pressure on ECB to act at its interest rate meeting later today.
A strong currency does not bode well if you want to fight slumping inflation.
Having said that, the euro did dip slightly, losing 19 points to $1.3910 overall yesterday, as spread betting
investors did not feel quite ready to test the aforementioned level.
Forex Trading: 07 May 2014
Whilst it is still too early to be cheerful, there are some timid signs that peripheral European economies are beginning to improve.
It was Spain's turn to report better data yesterday, which encouraged forex investors to push the euro 51 points higher against the dollar to $1.3927.
Additionally, the services PMI in Europe was stronger than anticipated.
Forex Trading: 06 May 2014
After three straight upward sessions, the euro stopped for a breather, dropping 7 points versus the dollar to $1.3875.
This came after the European Union downgraded its forecast for Eurozone's growth, adding that inflation will remain a concern for at least the next 2 years.
In that sense there's speculation the ECB might get ready for action (QE) as soon as this week when it meets in Brussels.
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By Jonathan Sudaria, 9 May 2014