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EURUSD Beyond 1.14 Ahead of Draghi Speech

Technical Bias: Bullish


  • EURUSD trades above 1.14 for first time since mid-February.
  • ECB President Mario Draghi to deliver a speech to the International Monetary Fund at 15:00 GMT.
  • US jobless claims fall to new 15-year low.

The EURUSD continued to rise on Wednesday, exceeding 1.14 for the first time in three months ahead of a speech by European Central Bank President Mario Draghi.

The EURUSD touched a daily high of 1.1443, its highest level since mid-February. It would subsequently consolidate at 1.1413, advancing 0.5 percent. A clean break above 1.1480 would lead to a test of 1.1533, the high from February. On the downside, initial support is located at 1.1243.


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Mario Draghi

European Central Bank President Mario Draghi will deliver a speech to the International Monetary Fund (IMF) on Thursday. The ECB head is expected to touch upon latest developments in Greece’s debt negotiations.

Greece Debt Talks Continue in Brussels

Earlier in the day Greek finance minister Yanis Varoufakis said Athens would never agree to a deal that conflicts with his party’s anti-austerity pledge. This has led to speculation that Varoufakis may depart his post as finance minister should he not be presented with an acceptable deal.

Meanwhile, talks between Greece and its creditors resumed in Brussels on Thursday. Sources close to the negotiations suggest both sides are still far apart on an agreement. Greece is still on the hook for wage and pension payments at the end of the month, followed by another repayment to the IMF in June.

US Initial Jobless Claims

In economic data, US jobless claims fell to another 15-year low last week, adding further evidence of a tightening labour market and raising hopes that the consumer-led recovery will regain its footing in the second quarter.

Initial jobless claims fell slightly to 264,000 in the week ended May 9, the Labor Department reported on Thursday. The four-week average for jobless claims, which weeds out week-to-week volatility , decreased by 7,750 to 271,740, the lowest level since April 22, 2000.

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