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Euro Rose to 1.3130. Traders await ECB announcement.

Posted by Chris Advincula on Jun 6, 2013 6:32:00 AM

June 6 Thursday 10:35 GMT

LONDON – The euro made extended gains in Europe to a four-week high of 1.3131 from 1.3090 (+41 points) against the dollar ahead of the conclusion of the European Central Bank meeting today. The ECB is widely expected to leave its interest unchanged at 0.5 percent.

In the past week, investors have taken the euro 150 points higher from 1.2950 to 1.3100 on a slow but steady ascent as the latest euro zone economic data showed small signs of improvement.

The gains however, were oftentimes met with quick retracements capped by the previous words of caution from the ECB President Mario Draghi about a sustained recovery and that the ECB had room to take its deposit rates below zero, if the economy deteriorated.

The ECB will announce its decision today at 11:45 GMT followed by Mario Draghi’s press conference.

The 21-day moving average rose from 1.3083 to 1.3120. The 60-day moving average rose from 1.3087 to 1.3115

 

Chris Advincula

WorldWideMarkets

 

euro.6.6 resized 600

Chart: FXTrek.com

 

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