News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCZ9dzS https://t.co/KD6mfkiCaW
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/TEoSjMpMBo
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/H9fW9ewiQd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/yLt0ldtMsV
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/ZwwuTzTeac
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/4DGXwA8vqs
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/mAMhWbV6Jy
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
EUR/USD Falters as Makuch Warns of ECB Action and Euro Weakness

EUR/USD Falters as Makuch Warns of ECB Action and Euro Weakness

Baruch Spier,

Talking Points:

  • ECB’s Makuch warns of possible measures to avoid deflation
  • Makuch also sees potential for a weaker Euro
  • EUR/USD falls 30 pips on comments

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The Euro fell about thirty pips against the US Dollar, as European Central Bank member Makuch said the bank is preparing measures to avoid a deflation environment. Following the near 5 cent gain in the value of the Euro in terms of US Dollars since the beginning of February, Makuch said that he sees potential for a weaker Euro. Additionally, Makuch said he would not oppose quantitative easing, which would be an unprecedented action for the ECB.

Makuch’s comments reinforced Draghi’s statement earlier this month that Euro gains are increasing relevant to price stability and the ECB will counter any material risk to inflation expectations. Any further accommodative action from the ECB to fight low inflation could drive the Euro lower.

EUR/USD 1-Minute: March 25, 2014

EURUSD-Falters-as-Makuch-Warns-of-ECB-Action-and-Euro-Weakness_body_Picture_1.png, EUR/USD Falters as Makuch Warns of ECB Action and Euro Weakness

That’s why the Euro declined following Makuch’s dovish comments, and EUR/USD may next find support by the 2-week low at 1.3749. Currency Strategist Ilya Spivak says that a daily close below 1.3779 could lead him to look for selling opportunities.

Chart created by Baruch Spier using Marketscope 2.0. Add DailyFX Support/Resistance to your charts at FXCM Apps.

-- Written by Baruch Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES