Or a short-term trend reversal in the making...is what most traders are currently focused on. ECB President Mario Draghi's comments of a rate reduction during the press conference, have pulled the plug on the Euro's advances. The change could have came from various reasons moving forward as negative reports on the revised forecast of a 0.5% lower GDP for the year. And the recent rally above the 1.3100 levels may drag export numbers lower for the German economy that may also hurt exports.
Although, technically the EURUSD has had some difficulty hurdling the 1.3130 levels which apparently met some profit-taking settlements from a variety of institutional investors. Currently the Euro is working @1.2967 against the USD, as of this writing. Thus, giving some relief for short-sellers who have been holding earlier positions on the short side of the Euro market. Some reluctance can be viewed as to whether this decline can find some stronger momentum as the market only has one more day for the much anticipated NFPs numbers.
The earlier report on the jobless claims came in @370k which happens to be better than expected that pushed the USDx from a registered daily low of 79.55 basis point to its current price level @80.21. Hardly a difference but enough to pullback at its present levels. This have given a better outlook for the USD moving forward as investors shifts sentiments and likewise the flow of positions from the precious metals have done the same for now. As prices for Gold have declined for the past couple of weeks, more on the levels below the USD1750.00 which also supported a gradual decline for the USD.
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