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EUR/USD Falls as ECB Refrains from Cutting Rates

November 8, 2012 by

EUR/USD extended its fall today after the European Central Bank maintained its interest rates. (Event A on the chart.) Traders have hoped that the central bank will ease its monetary policy and were not particularly pleased with the decision, spoiling their mood that was already sour after the US election. Even better-than-expected economic reports from the United States did not help the market sentiment.

US trade balance deficit shrank to $41.5 billion in September down from $43.8 billion in August. A pleasant surprise for traders, who expected an increase to $44.9 billion. (Event B on the chart.)

Initial jobless claims fell from 363k to 355k last week, instead of rising to 367k as was predicted by analysts. (Event B on the chart.)

EUR/USD for 2012-11-08

If you have any comments on the recent EUR/USD action, please reply using the form below.

One Response to “EUR/USD Falls as ECB Refrains from Cutting Rates”

  1. Eric D

    Certainly the news had their effect on the short time frame trend and may be on the long run too, as for the daily time frame, market saw price break decisively well below the resistance level around 1.2800 so the overall market view for the longer time frame depicts an overall bearish outlook for daily and weekly in my humble opinion.

    Reply

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