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20 Jun 2013
EUR/USD plummeted lower
FXstreet.com (London) - EUR/USD plummeted over the course of an hour from 1.3418 to print a low of 1.3261 on the release of the FOMC.
EUR/USD data
Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. There are a number of second trier releases on the calendar today for both the EZ and US. EZ Markit Manufacturing PMI (Jun), Markit PMI (Jun) Composite Markit Services (Jun) -7.30GMT. EZ Consumer Confidence (14.00GMT). For the US, Initial Jobless Claims (12.30GMT) Markit Manufacturing (12.58 GMT), Existing Home sales Change and Philly Fed (14.00GMT).
EUR/USD momentum to the downside
The EUR/USD has momentum indicators in the red which could extend the bearishness of the pair throughout the European session, although on the open the pair have bounced from the open by 15 pips. The move will target the 1.3200 handle and May highs and resistance. As far as areas 1.29070 are in tact, the broader trend on the daily and weekly charts is to the upside targeting 1.3600.
EUR/USD data
Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. There are a number of second trier releases on the calendar today for both the EZ and US. EZ Markit Manufacturing PMI (Jun), Markit PMI (Jun) Composite Markit Services (Jun) -7.30GMT. EZ Consumer Confidence (14.00GMT). For the US, Initial Jobless Claims (12.30GMT) Markit Manufacturing (12.58 GMT), Existing Home sales Change and Philly Fed (14.00GMT).
EUR/USD momentum to the downside
The EUR/USD has momentum indicators in the red which could extend the bearishness of the pair throughout the European session, although on the open the pair have bounced from the open by 15 pips. The move will target the 1.3200 handle and May highs and resistance. As far as areas 1.29070 are in tact, the broader trend on the daily and weekly charts is to the upside targeting 1.3600.