The ECB is about to announce its coverage resolution!
Will this imply extra positive factors for the euro or will Lagarde disappoint?
Listed below are the breakout ranges I’m watching.
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out a development breakdown and retest on EUR/GBP. Be sure you take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Information:
U.S. EIA crude oil inventories put up shock construct of two million barrels
Chinese language commerce surplus widened from $51.1B to $78.8B
French closing non-public payrolls unchanged at 0.3% acquire as anticipated
Japanese preliminary machine instrument orders elevated by 23.7% y/y
One other district in Shanghai dealing with lockdown on COVID-19 mass testing
Asian shares wobble forward of potential hawkish ECB tilt
ECB financial coverage assertion at 11:45 am GMT
ECB press convention at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
BOC Governor Macklem’s speech at 3:00 pm GMT
Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: EUR/USD
All eyes and ears are on the ECB assertion right now!
Will they lastly hike rates of interest this time or not?
Whereas the overall consensus is for policymakers to sit down on their palms in the meanwhile, many are additionally anticipating to listen to stronger hints of a tightening transfer coming in July.
In the event that they do shock with an precise hike or recommend that they’d pull the set off subsequent month, the shared forex may be in for a rally!
I’m maintaining shut tabs on this symmetrical triangle consolidation sample on EUR/USD because it may escape in both path. In any case, technical indicators are giving blended indicators in the intervening time.
The 100 SMA is beneath the 200 SMA to recommend that the trail of least resistance is to the draw back, however Stochastic seems to be pulling larger from the oversold area.
In any case, a breakout may very well be adopted by a rally or a selloff that’s the identical top because the triangle, which spans roughly 150 pips.