FXStreet (Córdoba) – EUR/USD managed to erased losses on Friday and near the end of trading rose above 1.1200 on a calm session in the forex market. The euro was the best performers during the American session and rose across the board, particularly against the pound.
The pair is about to post the second weekly decline in a row but it managed to end far from the lows. Several times during the week tested the key support area located around 1.1080 – 1.1100 but it managed to hold above.
EUR/USD between NPF and the ECB
During the last weeks the pair has been moving between 1.1080 and 1.1400 most of the time as investors analyze the next steps of the European Central Bank and the Federal Reserve.
“While additional QE by the end of this year i s our base case and should pressure the EUR lower, we are concerned that EUR/USD is already reflecting this QE risk suggesting a “sell-the-rumour-buy-the-fact” type of reaction. A break below the 1.10 level would strongly signal downside potential to test significant support around 1.08”, suggested strategists at TD Securities.
In the US, Janet Yellen said again on Thursday that expects to raise rates during 2015. The US employment report next Friday could give support to his view.
(Market News Provided by FXstreet)