Friday, January 23, 2015

$EUR/USD: selloff extends below 1.1200

$EUR/USD pushed even lower and printed fresh 11-year minimum in the lower 1.11’s as the euro can’t find relief following ECB decision to expand its asset purchase programme, including QE.

$EUR/USD broke below 1.1200 and accelerated to 1.1114, posting its lowest level since September 2009. The pair is currently trading at the 1.1160 zone, 1.8% below its opening price, having dropped more than 450 pips since the ECB announcement.

Central banks' announcements over the last week (first SNB removing $EUR/CHF floor, then the ECB incorporating QE) have intensified euro’s selloff, which remains in downtrend, having fallen uninterruptedly in monthly basis since July 2014 against the dollar. 

Now some analysts have begun to forecast $EUR/USD below parity before year-end given the ECB/Fed divergent policies.