EUR/USD Fundamental Analysis October 9, 2014 Forecast

Analysis and Recommendations:

The EUR/USD eased by 8 points as the US dollar climbed 6 points as traders took positions before the FOMC minutes. Earlier the dollar index has declined after weeks of appreciation as markets feel nervous about the results season, and is currently trading at 85.82. Euro is trading on a marginally positive note to the dollar in the morning session at 1.2634. The European Central Bank (ECB) in its meeting on Thursday 2nd October 2014 holds its interest rates at the lowest point of 0.05 percent. The decision was taken by central bank to revive the Eurozone faltering economy and stave away from the threat of deflation.  ECB’s President Mario Draghi came out with new plans to boost the credit and stave off deflation from the economy. The President also stated that officials will start buying up covered bonds this month and asset-based securities this quarter and the same process might be continued for at least two years. ECB shied away from a definite goal for how long the central bank will keep buying the total stimulus measures but may fall short of the 1 trillion Euros ($1.3 trillion) as mentioned earlier.

In addition to this policymakers meeting in Naples in Italy kept the option open for expanding the program to buy government bonds as of now. ECB President Draghi restated that he wants to steer the assets of the central bank towards the early 2012 levels which was at more than 3 trillion Euros as against current standing of 2 trillion Euros.

Constant fall in manufacturing and services data from the region prompted the central bank to cut the interest rates in the previous meeting. In addition, the economy is not able to match as per the estimates of central bank and needed some additional measures to revive the economic growth in the region.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Today’s economic releases actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Oct 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction

Oct 08 09:30 Swiss Bond auction (for decision)

Oct 08 15:30 Italy Announces details of BTP

Oct 08 17:00 US 10Y Note auction

Oct 09 09:03 Sweden I/L bond auction

Oct 09 17:00 US 30Y bond auction

Oct 10 09:10 Italy BOT auction