EUR Trading Outlook (05-12-2014)

EUR/USD The pair stayed 1.2300/30 for Europe’s morning ahead of the ECB & Draghi. Rates were left unchanged as f/c so focus was on Draghi’s presser. His initial remarks sent the pair to a new trend low 1.2278. Draghi initially stated asset buys will have a sizable impact on the b/s, reiterated the b/s reaching levels of early ’12 while also noting significant & increasing differences in mon pol cycles between major regions. The losses were short lived after Draghi noted that early next year would see a reassessment of monetary stimulus. The market saw this as no QE present for the holidays. EUR/USD took off & neared 1.2420. ECB projections for growth & inflation were lowered and the pair dipped to 1.2340. The dip was bought as broad USD weakness entered the market. The buys cleared the 200-HMA and a 1.2457 high was hit. The pair slid to 1.2360 after Europe’s close as the USD clawed back some losses. Late in the day the pair sat near 1.2370. The EZ Q3 GDP revision is due tomorrow but all eyes will be on US jobs data for trading cues.