Will the ECB reduce the value of the EURO?
Eyes are on ECB president Christine Largarde tomorrow to see if she will echo her colleague’s concerns at the bank’s policy meeting on Thursday, as ECB policymakers warn that if the currency keeps appreciating it will weigh on exports, drag down prices and intensify pressure for more monetary stimulus, holding back on the Euros economic recovery.
I am not expecting further reduction of interest rates just yet, but instead a firm word that actions will be taken if necessary, which could lead to bearish momentum.
Continued upside dollar momentum is also a added factor, with recent risk off sentiment indicating a further shift of assets from equities to currencies
So far it seems investors are attempting to price in Largarde attempt at reducing the euro /usd rate, with a break of the flag formation , allowing a great opportunity for a potential short on the re-test with excellent risk reward.
I am not expecting further reduction of interest rates just yet, but instead a firm word that actions will be taken if necessary, which could lead to bearish momentum.
Continued upside dollar momentum is also a added factor, with recent risk off sentiment indicating a further shift of assets from equities to currencies
So far it seems investors are attempting to price in Largarde attempt at reducing the euro /usd rate, with a break of the flag formation , allowing a great opportunity for a potential short on the re-test with excellent risk reward.
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.