Forex: EUR/USD breaks below 1.3100

FXstreet.com (Córdoba) - The bounce of the euro versus the dollar quickly found resistance at the 1.3145 level, forcing the cross to resume the slide at the beginning of the New York session. The downside pressure for EUR/USD was fueled by Buba's Weidmann saying that ECB may adjust rates if new information warrants.

Meanwhile, with indexes opening negatively in Wall Street, the euro and other risky assets failed to find respite as market sentiment remains fragile.

EUR/USD broke below previous lows and the 1.3100 mark, stretching to a low of 1.3075 in recent dealings. At time of writing, EUR/USD is trading around 1.3080, 100 pips or 0.7% below its opening price. On the downside, the 200-hour SMA around 1.3070 should offer immediate support followed by 1.3020 (Apr 15 low).

Apr 17, 2013

Canada: BoC keeps policy unchanged, rate at 1% in April

The Bank of Canada decided to keep its overnight rate at 1% in April, the Bank rate at 1.25% and the deposit rate at 0.75%. In the last meeting of Governor Carney before leaving the BoC for the BoE, the Council expects global economic activity to grow modestly in 2013 before strengthening over the following two years: “On a quarterly basis, growth in Canada is expected to pick up to about 2.5 per cent in the second half of this year. Despite this expected pickup, with the weak growth in the second half of 2012, annual average growth is now projected to be 1.5 per cent in 2013. The economy is then projected to grow by 2.8 per cent in 2014 and 2.7 per cent in 2015, reaching full capacity in mid-2015 – later than anticipated in the January MPR”, said the statement.

Forex: USD/CHF approaches 0.9300 on Buba’s Weidmann remark

Mirroring the EUR/USD movement the other way around, the USD/CHF is being pumped as the US session unfolds with less demand for the EUR and CHF. Behind the move is investors’ reaction to Buba’s Weidmann remarks, saying the ECB may adjust rate. The pair left the 0.9245 area and climbed all the way up to 0.9294 high, threatening to tackle the 0.9300 mark.