Filed Under:
Forex pairs in this Article » EUR/USD
FXstreet.com (San Francisco) - Had to happen someday, the euro had to take a punch, invariably from ECB, and lost ground. And so, the EUR/USD suffered its biggest plunge since December 2011 after falling from 1.3515 to reach lowest since September 15 at 1.3295.

However, the EUR/USD found buying interest at 1.3295 with the pair managing to recover ground and closing at 1.3415. Finally, market knew that the ECB is worried and was able to fight deflation, but Friday will issue a ruling with the US employment data.

Kathy Lien, Managing Director of FX Strategy for BK Asset Management, asked in a recent report: Will Non-Farm Payrolls Erase the Dollar Gains? Lien hints that "the 1% slide in the S&P 500 and the drop in U.S. Treasury yields suggest that investors are nervous about Friday's non-farm payrolls report and the potential of faster growth speeding up the Federal Reserve's timeline for reducing asset purchases."

In this framework, "the upside risk for the dollar is just as high as the downside risk and this means tomorrow's payrolls report should be a big mover for the dollar, " Lien concludes.

Meanwhile, the EUR/USD remains strongly bearish according to the FXstreet.com trend index in the 1-hour chart. MACD, CCI and momentum are pointing to the south while the Stochastic is neutral. 4 hours timeframe shows indicators in negative territory, and indicators aiming higher below their midlines..

Main headlines in the American session:

US: GDP expanded 2.8% YoY in Q3

US: PCE rose 1.9% QoQ in Q3

US: Initial Jobless Claims fell to 336K

ECB's Draghi: Rate cut in line with forward guidance

Twitter opens at $45.10

If you are a dollar bull, you don't want to see the DXY below here

US Consumer Credit rose to $13.74B in September

Wall Street had an ugly day; no matter what Twitter says
comments powered by Disqus
Trading Center