Key Economic Data - Coming Up Today(All Times GMT+2)
The EURUSD sunk following the unveiling of the European Union QE program by the ECB President Mario Draghi. The pair is at its low this morning currently trading at 1.1263 after falling as much as 380 pips following the ECB Press Conference. Official confirmation from the ECB was eagerly anticipated by the markets and this plan has been in the pipeline throughout 2014. The EURUSD has declined by 27 cents and 2700 pips after peaking at 1.3990 in May 2014. The pair has lost 19.3% and a bear market is officially defined as 20% decline from a major recent high. The ECB delivered a Quantitative Easing Program larger than the average expectations in the buildup of this release. Expectations had been set between €500 billion and around €1.2 Trillion and the plan has indicated €60 Billion purchases per month through till the end of September 2016, amounting to €1.2 trillion. In addition the ECB pledged to maintain stimulus and monetary support until inflation rates return to the 2% level from a current -0.2% CPI rate annualized. The daily candles reveal that yesterday was the biggest single day decline during the falls from 1.3990 to the current level (see EURUSD Daily Chart).
The AUDUSD has broken 0.80 for the first since 2009 and is now trading down at 0.7970. Gold has stabilizing in the $1300 an ounce region while Crude Oil has risen from $46 to $47.10 a barrel despite a report yesterday showing that US Crude Oil Inventories increased by 10.1M barrels. The USDJPY has recovered the losses made earlier in the week and is back above 118 having reached as high as 118.80. The GBPUSD is trading below 1.5000 for the first time in 18months and has lost over 200 pips since the ECB Press Conference. The cable had traded as high as 1.7190 in mid 2014 and has declined by 22 cents.
Overnight the HSBC Flash Manufacturing PMI advanced to 49.8 from 49.6 in a further sign that the Chinese economy is holding up well in the face a global economic slowdown. EUR Flash Manufacturing PMI advanced to 51 from 50.6 despite the German Manufacturing data surprisingly declining to 51.0 from 51.2. EUR Flash Services PMI advanced from 51.6 to 52.3 boosting prospects for a pick up the Eurozone economy as both the Manufacturing and Services data improved Euro wide last month. Coming up today GBP Retail Sales and CAD Retail Sales as well as Housing and Manufacturing data from the US.
EURUSD Support areas include 1.1300, 1.1250, 1.1200, 1.1175, 1.1100, 1.10, 1.0950. Resistance levels above are at 1.14, 1.15, 1.16,1.1650,1.1700, 1.1800, 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402.
EURUSD 5 Minute Chart
EURUSD 30 Minute Chart
EURUSD 4 Hour Chart
EURUSD Daily Chart
EURUSD Pivot Point Table