Draghi causes Euro to hit new four year low

<p>As the new the year begins for the financial markets, the Euro hit a new four year low against the USD of $1.2033 thanks to the […]</p>

As the new the year begins for the financial markets, the Euro hit a new four year low against the USD of $1.2033 thanks to the ECB’s Mario Draghi, who stated that the risk of the ECB failing its mandate is higher now than six months ago.  Currently the EUR/USD is trading around $1.2050 and investors are seeing further weakness.

The Pound has been very choppy over the holiday period as thin trading made the pricing of the pair jumpy and economic data out today could make these jumps more exaggerated than normal.  This morning UK manufacturing PMI is the main market mover and the data had been expected to come in at 53.7 from a previous reading of 53.5. However, manufacturing growth slowed unexpectedly to 52.5, which hit the pound as a result to see the GBP/USD pair trading below $1.5550.

The first US data of the year is also set to be with us later this afternoon, with the ISM manufacturing PMI expected to be  weaker at 57.6 from a previous  reading of 58.7.

The markets are expected to be trading a little on the thin side of volume until next week, when normal services resumes.




Supports  1.2075-1.2060-1.2045  | Resistance 1.2100-1.2120-1.2130



Supports 119.75-119.60-119.50 Resistance 120.00-120.15-120.30



Supports 1.5570-1.5560-1.5550  Resistance 1.5590-1.5600-1.5610



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