Since July, the Euro has been sliding, pushed down by a strong US Dollar, which was encouraged by solid US economic data and an increase in US bond rates. Buyers have maintained control and moving averages have been providing resistance amid retraces upward. This pair fell to 1.0450 before retracing to 1.06 by Friday, as US bond yields retreated lower.

Although, the larger trend remains bearish and MAs continue to act as resistance at the top. EUR/USD started the week with a small bearish gap on the first day, breaking the three-day bullish streak that sent the price up to 1.0600. Spot prices have remained weak throughout the Asian session and are presently trading at the 1.0550 level, or the daily low. The decline continued and this pair fell to 1.0520s. The economic data from the Eurozone and the dovish comments by ECB members have been keeping the Euro down and they will continue to push it lower.

Eurozone October Sentix Investor Confidence Released by Sentix

• October Sentix investor confidence -21.9 points vs -22.8 expected
• September Sentix investor confidence was -21.5 points

Investor morale in the eurozone continues to deteriorate in October, although the situation is not becoming any worse. Germany remains the biggest drag, according to Sentix, and it would be “premature to declare a turnaround” in investor confidence and expectations for the time being.

Remarks by ECB Policymaker, Martins Kazaks

• The phase of rapid rate hikes is already behind us
• Can currently count on the fact that we may pause
• So, any future rate hikes would be relatively small

Some token remarks there by Kazaks. The fact of the matter is that markets are relatively convinced that the ECB is done and unless the economic picture improves, it is hard to imagine policymakers having much interest to change their own bias as well.

Remarks by ECB Vice President, Luis de Guindos

• Inflation to fall in the coming months
• But urges caution due to evolution of Oil prices
• Expects current level of interest rates to contribute to price stabilisation

The subtext in this message is that unless something drastic changes in the economic landscape, they are done hiking for now.

EUR/USD Live Chart