The euro continued to trade in a weak manner despite some weakness in the dollar that was witnessed all across the board. The euro could not take advantage of the weakness in the dollar and has since been trading near the lows of its range over the past several hours. The euro seems to have been affected a lot by the extension of the QE, so much that it is turning out to be one of the weakest currencies around, at this point of time.
EURUSD Continues to be Weak
So far, the region around 1.1580 has proved to be some strong support and we have seen the EURUSD pair bounce off this region a couple of times. The bounces have been largely quite weak and shallow and do not inspire too much of confidence and hence it remains to be seen how long it can hold. If this region does manage to hold, then we could see some consolidation happening in this region which should push the prices higher, though it is a bit difficult to see that happening with the dollar holding steady.
There has not been much happening in terms of economic events from the US over the last 24 hours and so it continues to trade in a slow and steady manner. Since it is a new day of the week, not much can be read into what is going on in the markets as the traders positions themselves for news events and trading for the rest of the week.
Looking ahead to the rest of the day, we have a speech from the ECB President Draghi during the London session where he is expected to touch upon the monetary policy. The ECB has succeeded in keeping the euro weak by extending the QE program and we believe that they would not mind if the euro continues to be weak. But the data from the Eurozone continues to throw up some strong numbers and hence it might prove to be a difficult job for Draghi to keep the euro under control for long unless the strength of the dollar picks up soon.
This article was originally posted on FX Empire