The US Dollar gained on Friday led by a weaker Euro which fell on Draghi's dovish comments during the ECB's press conference held Thursday following the interest rate decision. Expectations of further easing and potential for another deposit rate cut have seen the Euro tumble lower versus peers. When combined with a surprise rate cut from the PBoC which delivered rate cuts across the board. The Dollar was trending stronger by late Friday on the heels of these developments. EURUSD continued to fall, closing Friday at 1.1010 after having broken the major trend line, with further decline expected towards support at 1.0950 through 1.0880. The Euro failed to recover despite better than expected flash PMI numbers on Friday. On a weekly basis, EURUSD has confirmed a bearish reversal and looks poised for a further decline early into this week.
Dollar Gains on PBoC Rate Cut
Daily Analysis - 26/10/2015