News and analysis

The European region eased the euro shorts


On Thursday (October 12), the dollar index was hovering around 92.90, while the euro was hovering near $1.1860. The dollar was hovering near 112.40.

The euro continued to rally on the day, breaking a previous session high of 1.1869, as the dollar and yen generally weakened.

Within days, traders in the asia-pacific region noted that the euro/dollar resistance was at 1.1880, the level of the 50% Fibonacci retracement of the fall from 1.2092 to 1.1669.

Traders noted that if the euro broke through 1.1880, it would see a further 61.8 per cent of Fibonacci retracement.

The minutes of the latest FED monetary policy meeting showed the FOMC policy committee members were more moderate in their comments than expected, and the dollar was hit by a selloff.

At the same time, with the easing of independent concerns in the Spanish region of Catalonia, the euro has been supported by euro shorts.

Days earlier, according to foreign media reports, the Spanish prime minister Rajoy (Mariano Rajoy) on Wednesday (October 11) gives the catalonian autonomous region government eight days to think about to give up independent, if when the region is still adhere to the independent, so he would lift its political autonomy, directly by the central government.

Reported, a move that could intensify authorities in Madrid and lie confrontation between regional governments, but also suggests that the Spanish attempted coup in 1981 May have the biggest political crisis since the solution.

Beijing time 09:10, dollar index 92.93, euro/dollar at 1.1860/63, dollar/yen at 112.39/40.

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