{"id":61190,"date":"2014-10-01T03:04:37","date_gmt":"2014-10-01T07:04:37","guid":{"rendered":"http:\/\/countingpips.com\/?p=61190"},"modified":"2014-10-01T07:16:28","modified_gmt":"2014-10-01T11:16:28","slug":"daily-report-eurusd-falls-to-levels-not-seen-since-september-2012","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/10\/daily-report-eurusd-falls-to-levels-not-seen-since-september-2012\/","title":{"rendered":"Daily Report: EURUSD falls to levels not seen since September 2012"},"content":{"rendered":"
October 1, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

While news headlines continue to be dominated by the protests occurring in Hong Kong, the EU economic sentiment further worsened on \u00a0Tuesday. Eurozone inflation declined again in September, with prices increasing at their slowest rate in nearly five years. Compared to September 2013, CPI rose by just 0.3% and slowed from August\u2019s 0.4% increase.<\/p>\n

When the Eurodollar declined from those dizzy May high\u2019s (1.3990) there was some optimism that this would lead to improved economic data.\u00a0So far, we are yet to see this correlation with fears of stagnant economic growth resurfacing following soft PMIs and now poor CPI data. \u00a0The EURUSD declined by over 100 pips on Tuesday as investors continued to price in further action from the European Central Bank (ECB). There will be pressure on Draghi to act again this Thursday and although i can\u2019t see the ECB acting on two consecutive occasions, i can envisage Draghi teasing more stimulus in the coming months, in the hope of driving the Eurodollar down some more.<\/p>\n

With the US economy improving and the Federal Reserve concluding QE later in October, investor attraction to the Greenback is strong at present. A collaboration of USD strength and a weak EU economic sentiment driving the euro lower means that the bear run in the EURUSD is not over quite yet.<\/p>\n

Meanwhile, the UK\u2019s fundamentals continued to impress with another robust performance from the UK economy. Quarterly GDP was revised upwards to 0.9%, which enticed the GBPUSD to progress to 1.6286. However the Cable\u2019s gains failed to last with the pair concluding trading at 1.6212. A combination of a lack of progress in Westminster where politicians are still trying to define what extra political powers Scotland will receive and confirmation of the UK\u2019s first airstrike in the battle against the Islamic State encouraged Cable softness.<\/p>\n

Still, the divergence between the EU and UK economy remains strong with the pair recording it\u2019s 11th consecutive day of losses on Tuesday. The pair declined to its lowest level \u00a0since July 2012 (0.7765) and looks set to meet the July 2012 low, 0.7555 in the coming days.<\/p>

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The Aussie is another pair that has moved with volatility in the past 24 hours, as the pair progressed to 0.8766 in the early hours of Tuesday morning. There were no major economic indicators released from Australia around that time, so the pairs 70 pip advancement was perhaps encouraged by Asian investors developing some risk appetite as they watched the events in Hong Kong unfold.<\/p>\n

However, the pair has already declined to its lowest level since January this morning (0.8662) following a disappointing retail sales performance this morning. The market forecast for retail sales in August was a monthly 0.4% rise, but retail sales only increased by 0.1%. The Australian economy remains under pressure to diversify away from mining reliance and move towards domestic consumption and disappointing retail sales this morning has nerved investors. We await more domestic related economic indicators from Australia on Thursday morning, such as Trade Balance and Building Approvals. If this data also disappoints, there is potential to extend below the current 2014 low (0.8659).<\/p>\n

Written by Jameel Ahmad, Chief Market Analyst at FXTM.\u00a0<\/b><\/p>\n

For more information please visit: Forex Time<\/a><\/p>\n

Disclaimer:<\/b> The content in this article comprises personal opinions and ideas and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime Ltd, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/p>\n

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Article by ForexTime While news headlines continue to be dominated by the protests occurring in Hong Kong, the EU economic sentiment further worsened on \u00a0Tuesday. Eurozone inflation declined again in September, with prices increasing at their slowest rate in nearly five years. Compared to September 2013, CPI rose by just 0.3% and slowed from August\u2019s […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-61190","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/61190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=61190"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/61190\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=61190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=61190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=61190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}