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Little movement in EUR/USD as markets eye us housing numbers – MP

FXStreet (Barcelona) - Kenny Fisher, Currency Analyst at MarketPulse notes EUR/USD showing little activity today as it trades in the mid 1.25 range.

Key Quotes

“After some volatility during the week, EUR/USD is showing little activity on Wednesday. In the US, we’ll get a look at important housing data, with the release of Building Permits and Housing Starts. The markets are expecting a slight improvement from both indicators.”

“ECB head Mario Draghi and his colleagues are under strong pressure to “do something” to kick-start the weak Eurozone economy. Deep interest rate cuts haven’t had much effect, so the ECB has purchased covered bonds and asset-backed securities.”

“So far, these securities have been from the private sector, and the ECB could decide to expand these purchases to government bonds, known has quantitative easing. However, there is resistance to quantitative easing from national central banks, such as the powerful Bundesbank.”

“If the ECB does move forward with quantitative easing, we could see the wobbly euro lose more ground.”

“EUR/USD tested support at 1.2518 in the Asian session. The pair is steady in European trade. 1.2518 is a weak support line. 1.2407 is stronger."

“1.2688 is a strong resistance line.”

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