EUR/USD off lows post-European open

FXStreet (Edinburgh) - The single currency has managed to bounce off session lows in the 1.0860 area vs. the greenback, now sending EUR/USD to test the 1.0870/75 band.

EUR/USD capped near 1.0900

The pair has surrendered overnight gains to the vicinity of 1.0900 the figure despite the initial softer tone in European equities and another important drop in the Shanghai index (down almost 4%).

EUR has seen its demand abruptly renewed during yesterday’s session in the wake of the ECB minutes, showing that many members of the Council still remain sceltical regarding the implementation of further easing in the region.

EUR/USD levels to watch

The pair is up 0.01% at 1.0866 with the next resistance at 1.0969 (high Jan.11) followed by 1.1010 (100-day sma) ahead of 1.1059 (high Dec.15). On the downside,
a breakdown of 1.0798 (61.8% Fibo of 1.0538-1.1059) would aim for 1.0709 (low Jan.5) and then 1.0538 (low Dec.3).

Jan 15, 2016

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Weak dollar raises import prices, force Canadians to shell out more for food

Bank of Canada Governor Stephen Poloz in his speech at Ottawa today asked Canadians to get used to a cheap dollar. The Canadian Dollar is also considered to be a 'Commodity Currency' given the fact that Canada is extremely resource rich and a sizable portion of the country’s income comes from mining and exporting resources, particularly oil. Thus, with oil hovering around $30 per barrel threshold it is not surprising to see the loonie facing downward pressure. Gasoline prices declined 10.6 per cent in November from a year earlier, less than the October rate of 17.1 per cent.