Session Recap: EUR weak, World Bank retracts growth expectations

By FXstreet.com | June 11, 2014 AAA

FXStreet (Guatemala) - On a calm US session the Euro consolidated losses across the board, retreating further from post-ECB highs.

The US dollar trimmed losses against commodity currencies and the Yen on American hours. The Japanese currency was among the best performers in Europe and shed back some gains onto the 102 handle in the US.

EUR/USD was the slowest burner with bids in 1.3520 up to 1.3540/60 that was short-lived and offers came in like trickle feed in a slow grind back to where we started of fin the US session with indicators turning back to their neutral stance on the hourly sticks. We enter Asia with a bias to the downside with key support at this years low, 1.3476.

USD/JPY pulled back after the drop to 101.85 in Europe but was slow onto the 102 handle. In the short term, Valeria Bednarik, chief analyst at FXStreet explained that the hourly chart shows indicators correcting higher from oversold levels, while moving averages converge in the 102.40 price zone acting as resistance. “Above 102.40 on the other hand, recovery may extend up to 102.80 doing then little to tip a recovery”.

Key Events

The World Bank estimates now that the global economy is going to expand by just 2.8 percent this year which is lower than their previous estimates of over 3 percent while 2015 growth was left at 3.4 percent despite projecting slower growth in China, U.S. Russia Brazil and India.

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