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Thomson Reuters
Oct 25 - 02:36 PM
EUR/USD - COMMNET-Draghi Was Balanced But EUR/USD Bears Reign
First appeared on eFXplus on Oct 25 - 10:50 AM

Markets tipped the scales toward more EUR/USD losses and a potential run to this year's low even after ECB Chief Mario Draghi attempted a delicate balancing act in his news conference. Draghi said ECB discussions showed little change in inflation while wage increases are not temporary, which helped tighten German-U.S.
2-year yield spreads and lift Euribor rates.
That, in turn, briefly buoyed EUR/USD. But Draghi did note risks from Italy's budget and Brexit.
While Draghi's presser overall seemed balanced the market appeared to grab hold of the risks from Rome and UK.
The small gains driven by Draghi were fleeting as traders focused more on the bearish risks and recent data.
Downside surprises to euro zone PMIs and German IFO and above forecast U.S. September durable goods data highlight persistently opposing growth paths, which suggests the greenback still has some appeal over the euro.
Techs also highlight bearish EUR/USD risks.
A long upper wick is forming on today's candle, RSIs remain biased down and a new short term low has been set.
A test of 2018's low seems likely, a break of which should put the June 2017 low in play.

chart: Click here

Thomson Reuters IFR Markets


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