ForexPros Daily News October 11, 2010

ForexPros Daily News October 11, 2010


Forex - Euro retreats from 1.40 as dollar firms up

Forex Pros – The euro was down against the U.S. dollar on Monday, retreating from a daily high, as the dollar stabilized despite expectations of further monetary easing by the Federal Reserve.

EUR/USD retreated from 1.4010, the daily high to hit 1.3936 during early European trade, shedding 0.52%.

The pair was likely to find support at 1.3832, last Friday’s low and short-term resistance at 1.4028, last Thursday’s high.

Data released on Friday showed that U.S. non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month. The weak data reinforced expectations that the Federal Reserve will announce new quantitative easing asset buying in order to boost the flagging U.S. economy.

The euro was also down against the pound, with EUR/GBP shedding 0.23% to hit 0.8747.

Also Friday, Jean-Claude Juncker, the head of the euro zone’s finance ministers, said that the euro was too strong and the single currency’s strength did not reflect the region's economic fundamentals.

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