Euro starts new year at new lows, oil tries to bounce

[Omaha Steve]

Source: Reuters

BY WAYNE COLE

The euro started the new year at 29-month lows in Asia after the head of the head of the European Central Bank fanned expectations it would take bolder steps on stimulus this month, underlining the U.S. dollar's rate advantage.

The single currency skidded to $1.2054 EUR=, depths last seen in mid-2012, while the dollar notched up a near nine-year peak against a basket of major currencies .DXY and bounded back above 120 yen JPY=.

The euro was now perilously close to its 2012 trough, and major chart support, at $1.2042. A break there would take it to territory not visited since June 2010.

The latest lurch lower came after ECB head Mario Draghi said the central bank stood ready to respond to the risk of deflation. Consumer price data for the euro zone due on Jan. 7 are widely expected to show a fall in annual terms.

FULL story at link.


Read more: http://www.reuters.com/article/2015/01/02/us-markets-global-idUSKBN0KB00720150102

[Lucky Luciano]

1. QE is coming to Europe this month - been short the euro on that spec. nt

[DallasNE]

2. Is Europe Falling Into The Same Funk As Japan

Has been in for years? That is what happens when you let politics set economic policy rather than responding to the conditions on the ground. And with this record Merklel won reelection by a comfortable margin. Europe could be in for a rough ride just as Japan has.

[CBGLuthier]

3. I have been doing nothing but Euros this week so good news for me at least.