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COZfx: ECB rate cut, EUR/JPY hits 4-day highs

Discussion in 'Analisa Fundamental' started by harryer, May 3, 2013.

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  1. harryer

    harryer Member

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    COZforex: The euro hit 4-day highs against the yen on Thursday after the European Central Bank cut interest rates in a widely expected decision amid concerns over the worsening economic outlook for the euro zone.

    EUR/JPY hit 129.27 amid European afternoon trade, the pair’s highest since April 26; the pair subsequently consolidated at 1.29.23, gaining 0.69%. COZforex foreign currency senior currency strategist, Paul Chew said, EUR/JPY was likely to find support at 127.04, the low of April 29 and resistance at 130.65, the high of April 22 and an almost 39-month high.

    The ECB cut the benchmark interest rate by 0.25 basis points to a record-low 0.5%. The central bank also lowered its marginal lending facility to 1% from 1.5% and left its deposit facility rate unchanged at 0.0%.

    Earlier in the week official data showed that inflation in the euro zone dropped to 1.2% in April, below the bank’s 2% targeted inflation rate. Investors were awaiting comments from President Mario Draghi at the bank’s post-policy meeting press conference later in the session.

    Meanwhile, the euro was steady against the pound, with EUR/GBP dipping 0.04% to 0.8468 and retreated from session highs against the dollar, with EUR/USD inching up 0.09% to 1.3190, off highs of 1.3242.

    Earlier Thursday, data showed that the euro zone’s final manufacturing purchasing managers’ index for April declined to 46.7, from 46.8 in March and a 4 month low. Germany’s final manufacturing PMI fell to 48.1 from 49.0 in March.

    COZ forex UK
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