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EUR/USD keeps falling, testing 1.2630

FXStreet (Edinburgh) - The sell off in the EUR is intensifying now, pushing EUR/USD to challenge the area of 1.2630.

EUR/USD weak… weaker

Spot keeps breaching supports as buyers practically vanished after the FOMC announced the end of its bond-buying programme today. The pair is down more than a big-figure following the Committee’s decision, coming down from the 1.2760 region. The FOMC caught markets off guard, showing a hawkish tone when came to highlight the current recovery of the US economy, with the drop in the unemployment as one of the salient points. Regarding the timing of the first rate hike, the Committee said it still needs ‘considerable time’ for such a change in the monetary policy.

EUR/USD key levels

The pair is now down 0.70% at 1.2644 facing the immediate support at 1.2613 (low Oct.23) ahead of the psychological handle at 1.2600. On the flip side, a breakout of 1.2685 (low Oct.28) would open the door to 1.2693 (21-d MA).

Two-year Treasury yield near three-week highs

The yields at the short end of the bond market curve in the US have shot higher after the Federal Reserve (Fed) announced an end of its QE program.
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USD/CAD jumps to 1.1225 as QE3 dies

The USD/CAD is enjoying the Greenback party following the Fed's decision to terminate QE3 and the acknowledgement of the improvement in the labor market. Thus, the USD/CAD rose 90 pips from 1.1130 to break above 1.1200 and trading on daily highs at 1.1225.
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