EuropeanCentral Bank (ECB) shook domestic and forex markets as it declared
the new interest rate 0.10 percent down from the previous 0.15
percent on Thursday dazzling the currency trading. With the new
interest rate at 0.05 percent, short-term bonds entered negative
floating charts in France, Austria, Netherlands and Germany, where
investors jumped to sell euros to reinvest their holdings in higher
yielding investments overseas.
In the forex market trading,
EUR/USD pair fell to $1.3000 as per our resistance level pointed out
in yesterday's report. President of ECB Mario Draghi added, "ECB
will start purchasing asset backed bonds as a further influx in the
economy from October."
Forex pairs are correcting their
measures as they are accepting the new reforms in the central
authority in European Union (EU) and the changes brought in currency
level. EUR/USD pair is likely fall further with support at $1.2985
with resistance level marked up between $1.3105 and $1.3110.
The
pair is gaining support at the level of $1.2955 and $1.2900. Though,
the value of Euro is terming as "exaggerated" at the
moment, the pair is likely lose out in the market because of hiking
US non farm payrolls (NFP).
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UK markets showed up trading
at similar levels as the pairing of GBP/USD is hovering at the level
of $1.6400 expected to fall. Forex experts are holding up the sales
until the pair breaks below $1.6390 targeting at $1.6300. UK markets
are trading flat as there is no major news in line with exception to
Halifax HPI posting.
USD/JPY traded near the same levels of
104 but did not break over the resistance level of 105.00 even after
Bank of Japan intervened. Governer of Bank of Japan Kuroda said, "Our
economy is facing trouble since hiked tab from April and the forex
trade is representing that."
Though, Kuroda admitted the
problematic economic growth he did not comment on any changes in
monetary policy rather commented, "Economy is waiting for a
recovery from the markets." USD/JPY is trading with support
levels between 104.40 and 104.00 with resistance hiked at 105.30 and
105.40.
