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18 Sep 2013
EUR/USD calm, bored around 1.3350
FXstreet.com (Edinburgh) -Nothing relevant is surrounding the single currency so far, with the EUR/USD gyrating around 1.3350/55 and extending the consolidation pre-FOMC meeting.
EUR/USD eyes on 1.3400/50
The consensus regarding today’s FOMC gathering points to a $5-$15 billion taper and a dovish tone from Chairman Bernanke, intensifying the ‘lower for longer’ vision on rates and thus ‘talking down’ expectations for an early rate hikes. “Chairman Bernanke is likely to emphasize that the FOMC will continue to take into account developments in the labour force participation rate stressing that the unemployment rate threshold is not a trigger for rate hikes… US dollar selling heading into the meeting has served to reduce downside risks following the outcome of the meeting, having already discounted a more dovish outlook”, commented Lee Hardman, Currency Analyst at BTMU.
EUR/USD levels to watch
At the moment the pair is losing 0.01% at 1.3356 and a break below 1.3326 (low Sep.17) would target 1.3298 (low Sep.16) en route to 1.3262 (MA10d). On the upside, the first hurdle aligns at 1.3399 (high Aug.28) ahead of 1.3410 (high Aug.23) and then 1.3427 (high Aug.21).
EUR/USD eyes on 1.3400/50
The consensus regarding today’s FOMC gathering points to a $5-$15 billion taper and a dovish tone from Chairman Bernanke, intensifying the ‘lower for longer’ vision on rates and thus ‘talking down’ expectations for an early rate hikes. “Chairman Bernanke is likely to emphasize that the FOMC will continue to take into account developments in the labour force participation rate stressing that the unemployment rate threshold is not a trigger for rate hikes… US dollar selling heading into the meeting has served to reduce downside risks following the outcome of the meeting, having already discounted a more dovish outlook”, commented Lee Hardman, Currency Analyst at BTMU.
EUR/USD levels to watch
At the moment the pair is losing 0.01% at 1.3356 and a break below 1.3326 (low Sep.17) would target 1.3298 (low Sep.16) en route to 1.3262 (MA10d). On the upside, the first hurdle aligns at 1.3399 (high Aug.28) ahead of 1.3410 (high Aug.23) and then 1.3427 (high Aug.21).