WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Euro Still Holding

Posted by WorldWideMarkets . on Nov 14, 2013 3:29:00 AM

The euro so far is not losing altitude like it did until a few days ago. That’s despite the shock rate cut from the European Central Bank.
Perhaps in hindsight investors see the ECB as being less dovish than first thought. Rates were already low and there is tale that some ECB policymakers were not completely enamored with the rate cut. If true that would rule out other stimulus.

Then there is ongoing demand for the single currency from Emerging Market central banks, particularly Asia, that want to diversify. Sovereign funds also want euros to invest as the euro zone economy recovers.

There are still for and against cases for both the euro and the dollar. Still no clear investment wind one way or the other in that particularly pair.

But note the euro bounced off four-day trend line support at 1.3390 on Wednesday indicating investors aren't ready to push it lower without a very clear euroreason.

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!