COZfx: Euro reverses its gains in the Asian session

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COZforex: The EUR rise 0.49% against the USD and closed at 1.2732, continuing its previous session gains.

In economic news, the French business sentiment index unexpectedly dropped to a level of 96.0 in September, down from previous month’s reading of 97.0. Market anticipations were for the business sentiment index to remain unchanged.

The ECB Vice President Vitor Constancio spoke in favour of the ECB’s recent measures in order to ward of very low inflation the Euro-zone. However, German Bundesbank President Jens Weidmann criticised the ECB’s recent plans to buy private sector bonds as according to him the central bank should have adopted structural reforms to be carried out in individual Euro-zone nations, rather than spend billions on private sector assets and transfer risks from banks to the ECB and ultimately to taxpayers.

In the US, the Fed in its latest monetary policy meeting revealed that policymakers intend to end its quantitative easing programme after this month and reiterated that interest rates would remain low for a considerable period of time. It also expressed concern that further strengthening in the greenback could hurt the US exports amid faltering economic growth in the Euro-zone, slowdown in China and Japan along with heightened geopolitical risks.

In technical analysis, COZforex senior currency strategist Ian • Quigley said, EUR/USD is predicted to find support at 1.2649, and a decline through could take it to the next support line of 1.2569. Meanwhile, the pair is predicted to find its first resistance at 1.2782, and a rise through could take it to the next resistance line of 1.2835.

Trading trends in the Euro today would be determined by Germany’s trade balance as well as current account data, set for release in a few hours from now. Meanwhile, investors keenly await initial jobless claims data from the US, scheduled later in the day.

(COZ forex UK)