Testing the Euro

November 8th, 2010
by Richard

It is estimated that the EUR / USD will test the resistance zone at 1.3600 during the day. EUR – The Euro continues its correction upward The euro rose over the past three trading sessions against the dollar. Yesterday was no exception, especially the optimism generated by the publication of the Purchasing Manager’s Index. This indicator along with the profits of the various stock markets benefited from the euro currency managed to advance against most currencies. The euro closed at $ 1.3376, compared with $ 1.3315 earlier. The EUR / JPY rose and reached 132.10, 131.35 compared to previous. On the other hand, the EUR / GBP 0.8945 reaching gained ground, with respect to previous 0.8890.

The euro has benefited recently, especially by the doubts that now generate haven currencies. Many investors began to invest in riskier assets, and the Euro Zone is estimated as an area benefit. That is why the euro and the pound are taken full advantage. It is estimated that during these days will be seen high volatility, as it looks forward to the ECB’s decision regarding interest rates. It is estimated that the ECB will be decided by a reduction of 25 basis points in interest rates, however, may also announce unconventional measures. If so, the ECB will take measures similar to those taken a few months ago by the Fed, especially with the purchase of government bonds. If the ECB does not implement a program might reasonably be that the euro is against the U.S.

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