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9 Oct 2013
EUR/USD hits weekly lows at 1.3520
FXstreet.com (Edinburgh) -The euro is now prolonging its intraday slide, pushing the EUR/USD to challenge multi-day lows in the boundaries of 1.3520 on Wednesday.
EUR/USD ignored Yellen’s nomination
The pair practically remained indifferent after President Obama announced he would nominate current Vice-Chairman Janet Yellen to succeed Ben Bernanke in the Fed. Despite Yellen being on the dovish side, the pair seems to be more concerned about the developments in the US political front, as the debt ceiling deadline is looming. “Markets remain listless with subdued volumes and cracks are starting to appear as worries continue that the US may find itself unable to meet its near term debt obligations. One month US yields rose yesterday by 17 bps to 0.34%, the highest levels since the turbulent events of October 2008, and it is also worth noting that the cost of insuring against US default has doubled in price in the last few weeks to levels not seen since the last bout of US spending squabbling at the start of this year”, assessed analysts at Investec Capital Markets.
EUR/USD key levels
The pair is now losing 0.36% at 1.3524 and a breakdown of 1.3505 (low Oct.2) would target 1.3467 (low Sep.30) and then 1.3462 (low Sep.25). On the flip side, the initial resistance lies at 1.3582 (high Oct.8) followed by 1.3591 (high Oct.7) and finally 1.3607 (high Oct.8).
EUR/USD ignored Yellen’s nomination
The pair practically remained indifferent after President Obama announced he would nominate current Vice-Chairman Janet Yellen to succeed Ben Bernanke in the Fed. Despite Yellen being on the dovish side, the pair seems to be more concerned about the developments in the US political front, as the debt ceiling deadline is looming. “Markets remain listless with subdued volumes and cracks are starting to appear as worries continue that the US may find itself unable to meet its near term debt obligations. One month US yields rose yesterday by 17 bps to 0.34%, the highest levels since the turbulent events of October 2008, and it is also worth noting that the cost of insuring against US default has doubled in price in the last few weeks to levels not seen since the last bout of US spending squabbling at the start of this year”, assessed analysts at Investec Capital Markets.
EUR/USD key levels
The pair is now losing 0.36% at 1.3524 and a breakdown of 1.3505 (low Oct.2) would target 1.3467 (low Sep.30) and then 1.3462 (low Sep.25). On the flip side, the initial resistance lies at 1.3582 (high Oct.8) followed by 1.3591 (high Oct.7) and finally 1.3607 (high Oct.8).