Tag: European Central BankSort
ECB Boosts Dollar Liquidity, Dollar On Downside Spike
ECB (European Central Bank) announced this morning that it had coordinated with the Federal Reserve, Bank of England, Bank of Japan, and the Swiss National Bank that it provide three U.S dollar liquidity operations. The news caused a sell-off and a downside spike for the U.S dollar. The EUR/USD jumped to the 1.3934 high which bring a sight of relief for the Euro bulls.
The EUR/USD broke below the 1.4000 level and hit the 1.3944 low so far. The European Central Bank President Jean-Claude Trichet claimed that a ‘downside risk’ to the EU economy is possible and that the interest rate will most likely remain the same. Trichet added, inflation in the Eurozone has paused for the moment.
ECB Purchases Italian and Spanish Debt, No Help for Euro
The ECB (European Central Bank) implemented its ‘bond-buying program’ for the Italian and Spanish debt, but it did little to help the Euro curb its downfall this morning. The Euro went to the 1.4400 high this morning against the U.S dollar and then plunged to the 1.4150 low. Intraday bias remains on the upside, as long as the 1.4012 minor support line is not broken.
EUR/USD Has the Bullish Sentiment, More Upside Foreseen
EUR/USD broke the 1.4495 minor resistance line and reached the 1.4550 high. Intraday bias has changed to the upside, as long as the 1.4100 minor support line is not broken. On the upside, the currency pair reversed its bearish sentiment to bullish bias after the Greek parliament voted to pass the austerity measures.
EU Policymakers Dispute the Handling of the Greek Debt
Euro Versus The US Dollar (EUR/USD) Could Drop Further
The Euro dropped almost 300 pips from 1.3859 to 1.3543 against the US dollar last week when European Central Bank President Jean-Claude Trichet said inflation risks are “broadly balanced,” dimming the prospect of an increase in interest rates. The comments on the inflation outlook disappointed investors who were betting on euro zone interest rates would rise ahead of those in the US.
And the fire sale goes on! The EUR once again got sold like ice popsicles on a summer afternoon during the last several days as the debt contagion in the euro zone, particularly in Greece, worsens. Just last week, the fiber or EURUSD was trading around 1.2700. Similarly, the EURJPY was exchanging at around 118.00. Today, however, both euro pairs are down to 1.2200 and 111.50, respectively.
The euro continues to show some weakness against its major peers like the dollar and yen as concerns that some of the euro zone nations may dump the use of the currency build up. The European Central Bank, as we know, cannot extend its hand solely to a single country since it was tasked to monitor and regulate the financial system of the entire euro zone.