Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Euro recoups Fed losses

The euro is slowly pulling back the losses it incurred following the Federal Reserve meeting on Wednesday.

The EUR/USD is trading at $1.3791, up 0.08% as the euro slowly but surely claws back the losses it suffered after Janet Yellen’s comments that the Federal Reserve will no longer only use the unemployment rate as a benchmark for monetary easing, instead using a broader group of economic indicators. This suggestion that the Fed could increase interest rates sooner than traders initially thought drove the euro below the $1.39 level.

The crisis in Crimea is holding the euro back from making a quicker recovery, as the eurozone relies on natural gas from Russia. Brussels is hoping that Moscow doesn’t reduce gas supply to the west, while the US has already imposed some sanctions on Russia. If we were to continue this tit-for-tat sanctions war, we could see the euro 100-day moving average of $1.3690 provide support.

In the short term, the euro is finding resistance at the 50-hour moving average of $1.3819. A break through that could put us on track towards the 200-period MA of $1.3880. 

Spot FX EUR/USD chart

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

Find articles by analysts