Re: Hotforex.com - Market Analysis and News.
Date : 21st November 2014
EURUSD TRADING SHARPLY LOWER AFTER COMMENTS FROM THE ECB PRESIDENT MARIO DRAGHI.
EURUSD dropped yesterday and closed at 1.2539. Data released yesterday indicated that the German Flash Manufacturing Purchasing Managers Index dropped to a level of 50.0 in November. The German Flash Services PMI also dropped to a level of 52.1 in November. The negative tone was also seen in the general releases for the Eurozone where the Flash Manufacturing PMI dropped to a level of 50.4 and the Flash Services PMI dropped to a level of 51.3 in November.
Data from the United States revealed that the Consumer Price Index in the largest economy in the world remained steady in October coming at 0.0 percent against the market expectations of a drop with -0.1 percent. The Philly Fed Manufacturing Activity was the most surprising release of the day with its reading of 40.8 in November which is a 21-year high level. The Existing Home Sales report from the US added to the positive tone after reaching a level of 5.26M in October.
During his speech today the President of the European Central Bank Mario Draghi said that the European Central Bank must raise the inflation in the Eurozone as fast as possible and will broaden its asset purchase program if needed. The markets reacted to his speech and the EURUSD dropped sharply.
Support for the EURUSD is seen at 1.2412 and resistance is seen at 1.2512.
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