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COZfx: Euro trading higher ahead of ECB President’s speech

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COZfx: Euro trading higher ahead of ECB President’s speech

Postby dwang » Wed Dec 11, 2013 2:27 am

COZforex: For the past trading, EUR rise 0.23% against the USD and closed at 1.3738. However, Euro’s gains against the greenback were capped after 3 of the top Fed officials expressed their support for a Fed-QE-taper in the month of December. St. Louis Fed President, James Bullard, citing the recent improvement in the US jobs markets, suggested that a “small taper” in December could be the appropriate policy course, whereas, President of the Richmond Fed, Jeffrey Lacker highlighted the possibility for the Fed to discuss tapering plans at its December policy meeting. In a separate remark, Dallas Fed President, Richard Fisher, warned that the cost of the Fed’s $85-billion-a-month asset-purchase programme “far exceeds” its benefits and urged the central bank to trim the size of its monthly asset-purchase programme “at the earliest opportunity.”

On the economic front, a report showed that the Sentix investor confidence in the Euro-zone economy dropped unexpectedly to a level of 8.0 in December, from previous month’s reading of 9.3. Meanwhile, another report revealed that, on a seasonally adjusted basis, Germany’s trade surplus narrowed more-than-expected to €16.8 billion in October, from a surplus of €18.7 billion registered in the preceding month. Similarly, on a seasonally adjusted basis, industrial production in Germany dropped 1.2% in October, defying analysts’ call for a rise of 0.8% and compared to a 0.7% decline witnessed in the preceding month.

In technical analysis, coz forex senior derivatives trader Daniel • Moloney said, USD/JPY is predicted to find support at 1.3711, and a drop through could take it to the next support line of 1.3665. Meanwhile, the pair is predicted to find its first resistance at 1.3786, and a rise through could take it to the next resistance line of 1.3815.

European Central Bank President, Mario Draghi’s speech, expected to commence later today, would likely determine the Euro’s further trading trend.

(COZ forex UK)
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