Euro Takes a Beating

This morning has been very light on the news side with no major news from any part of the world that is big enough to affect the trading as such. But the big news on the trading side has been the continued slide of the euro which has been a carry on effect from the ECB press conference that was attended by Draghi yesterday. The ECB President didn’t specify any target for stopping or tapering the QE and just chose to mention that it was something that was not even discussed.

This disappointed the markets as the market was expecting some kind of news on how and when the tapering of QE begun and the lack of clarity on it led to the market selling the euro. There was an initial rally towards 1.1030 but that was sold into heavily and EURUSD has been dripping lower ever since, breaking through 1.0950 and today morning, we saw it break through 1.0900 where there is also a large option interest as well. We expect some range trading and consolidation around this region during the euro session.

This euro slide also helped in fueling the USD strength which was seen across all currencies and commodities as well as all of them dropped against the USD though not by much. Today morning also saw speeches by BOJ Kuroda but he didn’t choose to say anything special or anything that wasn’t already known but the general USD strength has caused the USDJPY sit at its range highs at 104.2 looking to see if it can get through this range top so that it can get a move beyond.

For the rest of the day, we do not have any major news to be released from the euro region for today though the Canadian CPI and the Canadian Retail sales will be released later on in the day which could help fuel the uptrend that is currently going on in the USDCAD pair.

 
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