ECB startled EUR trading in FOREX market

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.