The ECB started a third day of purchases as it acquired Spanish covered bonds, adding on to the French and Portuguese securities it has already purchased this week. The central bank, which will reveal the amount of debt purchased on Oct. 27, has been buying bonds in parcels from 5 million euros to 20 million euros, sources reported on the basis they will be kept anonymous.
The Euro fell against the dollar yesterday after resisting the correction towards 1.274, right at the 200 hourly moving average as the market pushed the EUR/USD below 1.2700. The better than expected month on month change in the U.S CPI also brought the U.S dollar higher against its peers, seeing the Euro end the day slightly below 1.265, the October 15th low.
EUR/USD is expected to fall even lower today due to the French and German Flash Manufacturing PMI as even achieving estimates will have shown a drop in expectations from previous months’ figures. The U.S unemployment claims during the U.S session may not be the most volatile catalyst for the Euro today which may see a little retracement if claimants turned out more than expected.
|Bearish||1.252||1.259||1.2630||1.2700||1.274||1.281||Resist at 1.2700||1.2766||1.2500|