OctaFX | OctaFX Forex Broker
Open trading account

Session Recap: Take the USD and run; EUR/USD at 1.2700

FXStreet (San Francisco) - Awful day in stocks and big decline in the EUR/USD as market is trading focused on geopolitical and interest rates matters as well as terror fears.

News from Russia that the government is studying a proposal of law to seize foreign assets as well as a supposed subway attack plot from Iraq and central bank comments on interest rates put pressure on risk appetite.

Draghi added his point of salt as the central banker promised more facilities if needed for the EZ. BoE's Carney affirmed that the time for interest rate hikes is coming.

Then, stocks market performed its worst day since July 31 and the US Dollar posted gains versus the Euro and the Pound but losses against the Japanese Yen. Some choppy market was observed as dollar positions were on profit-taking mode as leveraged investors attempted to cover losses in equities.

The EUR/USD declined for third day and posted a fresh lowest since November 2012 at 1.2700. Currently, EUR/USD is closing at 1.2749, down 0.24% on the day, having posted a daily high at 1.2784 and low at 1.2697.

According to Valeria Bednarik from FXBeat, "the recovery from the mentioned low has been extremely shallow, with the pair struggling around 1.2740 area, a quite strong static level." Bednarik points out that the "risk on the pair remains to the downside, with a break below 1.2700, exposing the 1.25 price zone for the upcoming sessions."

The GBP/USD jumped on Carney's commented earlier in the ay, but movement wasn't strong enought to recover all previous losses. Currently, GBP/USD is finishing its first negative day in three session at 1.6314, down 0.15% on the day, having posted a daily high at 1.6344 and low at 1.6275.

Main headlines in the American session

US initial jobless claims 293k vs 300k exp

US: Durable Good Orders (Aug) dropped 18.2%

BoE's Carney: Time for raising rates is getting closer, but no preset course

United States Markit Services PMI came in at 58.5 below forecasts (59) in September

Awful day in Wall Street

South Korea Consumer Sentiment Index: 107 (September)

Read more Previous

USD strength could slow down pace of Fed tightening - SocGen

Such a rapidly rising USD could slow down the pace of Fed tightening, notes Societe Generale.
Read more Next
Start livechat