Forex: EUR/USD falls to "red" despite ECB LTRO announcement

The EUR/USD was unable to extend gains above 1.3430 high and breached below the 1.3400 mark and opening price of 1.3383. The pair has retraced its daily gains and is moving lower towards yesterday's lows, of 1.3371.

The ECB announced that LTRO repayments for February 13th will total €5B, more than the €3.2B of last week. The amount outstanding from the 1st LTRO is €343B.

"I think today the price may return to the level of 1.3490, at least, and then form another descending structure to reach the target at 1.3330", wrote Roboforex.com analyst Igor Sayadov, expecting then a pivot point formed for a new ascending movement towards the 1.3980.

Feb 8, 2013

Forex: USD/JPY turns weekly candlestick to “red”

After reaching as high as 94.06 after news that BoJ Governor Shirakawa announced his decision to leave office earlier than expected, the USD/JPY is threatening to do the long expected correction lower. Reports that Japan PM Shinzo Abe is finding resistance in his quest to act agressively in both fiscal and monetary policies. “Abe's desire for much bolder monetary easing is reportedly meeting resistance from inside the MoF, the BoJ, and even within his own cabinet, on fears that radical easing could unsettle the JGB market”, wrote UBS analyst Gareth Berry.

European leaders to endorse U.S. free-trade deal

According to a draft joint statement, European leaders are slated to agree in principle on Friday to push for a free-trade pact with the United States, putting the onus on the White House to respond towards a proposal that would integrate nearly half of the world's economic output.