EUR/USD Reverses Drop After ECB Cuts Interest Rates

Today’s trading session was completely unlike yesterday’s one as all data from the United States was better than expected. The most important event happened in Europe though as the European Central Bank announced its monetary policy decision. Analysts have predicted that the central bank would leave interest rates unchanged, but there were more and more speculations about an interest rate cut as time was passing by and economic reports from the eurozone were coming out rather bad. Such talks proved true and the ECB slashed borrowing costs at today’s meeting. (Event A on the chart.)

EUR/USD Rises After Christmas

 

EUR/USD rose today after yesterday’s holiday, when markets were closed. The currency pair currently trimmed its gains though and shows tendency to decline. The data from the United States was mixed as the housing market continued to show signs of improvement, but manufacturing growth unexpectedly slowed this month.

Attempts to Rally, Looks for Direction

 

EUR/USD attempted to advance today, but trimmed its gains and currently trades in a range. The European Union released the bailout for Greece, improving the outlook for the eurozone. At the same time, fears of the fiscal cliff in the United States eat away confidence of Forex traders, weakening the currency pair. US consumer prices are falling, according to today’s report, and that does not help either.

Rally of EUR/USD Ends on Poor Data & Spanish Debt Auction

   EUR/USD ended its five-day rally today, after reaching the highest level since October 17, as the macroeconomic data from Europe was poor and Spain failed to reach target on its debt auction. The US data was a bit better, though not stellar either. On the positive side, factory orders unexpectedly grew and the services sector expanded faster than expected. On the negative side, employment growth was slower that market participants have hoped for.

EUR/USD Rallies as Germany Approves Bailout for Greece

EUR/USD rallied today as German lawmakers approved the latest round of the rescue package for Greece. The news supported this week’s trend of improving outlook for Europe. The US data, on the other hand, was not particularly encouraging.

EUR/USD Gains as Finance Ministers Talk About Greece

    EUR/USD erased its losses today on hopes that European finance ministers will reach an agreement about a bailout for Greece. Earlier, the currency pair dropped as yesterday’s talks between the finance chiefs failed to deliver any meaningful outcome. The US economic reports were largely positive today, but fears of possible tax increases and spending reduction restrained consumers’ confidence.

Nikkei slips as investors shy from risk before U.S. elections

 By Ayai Tomisawa
    TOKYO, Nov 5 (Reuters) - Japan's Nikkei inched down on Monday, with investors shying away from risk before the results of a tightly fought U.S. election, although a weaker yen limited
losses while hopes for Toyota Motor Corp.'s earnings supported the index.