EUR/USD weak as ECB meeting and QE weigh

EUR/USD opened in Asia at 1.1188 and remained under pressure as it plunged to a low of 1.1160. A further leg lower would target the multi-month low of 1.1098 hit on January 29. The Bank’s 1 trillion euro government bond buying program begins this week. Also the ECB meeting on Thursday will be a key risk event.

GBP/USD fell in sympathy with EUR/USD from 1.5450 to 1.5393. EUR/GBP got a small bump up from a fresh trend low of 0.7235 to 0.7259 on short-covering.

USD/JPY edged higher in the Asian session, rising from 119.59 to peak at 119.95. The pair was helped Nikkei gains and relatively high US yields. The bias remains to the upside. EUR/JPY saw a small lift from 133.70 to 133.97 but is vulnerable to ECB quantitative easing. The Bank’s new QE program will be launched this week. GBP/JPY consolidated recent gains between 184.41-81. AUD/JPY traded down from 93.66 to 93.00 on expectations of RBA easing tomorrow.

USD/CHF found itself better bid between 0.9539-60. EUR/CHF see-sawed between 1.0658-83 and the market looking for directions after last week’s push down.

AUD/USD opened in Asia at higher 0.7840 and traded down from an early high of 0.7850 to 0.7770 with data out this morning unlikely to hinder the RBA from easing tomorrow. Effects of the PBOC weekend rate cut were fleeting and better China PMI data had little effect.

NZD/USD opened higher at 0.7589 following the surprise PBOC rate cut over the weekend. An uptick to 0.7600 proved short-lived, and NZD fell alongside AUD to 0.7521, just shy of Friday’s 0.7514 low.

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Source:: EUR/USD weak as ECB meeting and QE weigh

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