General market theme
Over the past 24 hours the focus in the currency markets has been on the Euro in light of the release of the ECB minutes from their last monetary policy meeting and also Mario Draghi’s speech in public. The consensus among analysts was that the ECB President would attempt to talk down the Euro that has seen significant gains over the past few weeks but the price action in the Single currency probably disappointed them. Mario Draghi avoided making any reference in the currency rate and the content of the minutes was as bearish as expected hence there was nothing too exciting in the way the markets traded yesterday.

Price action highlights
The Euro came under some pressure especially early in the morning when the European markets opened as traders were bracing for a potential correction to the downside on the back of Draghi’s remarks so the 1.1450 highs were abandoned. The decline drove the Euro down to the 1.1350 area where the 200-period moving average was positioned but the lack of any significantly bearish comments from Draghi and co. didn’t push the Single currency any further to the downside. As long as Dollar remains on the backseat and Euro holds above the 1.1350 area of support we believe that the Euro will continue its current sideways pattern and with no news or report scheduled for release today we should expect limited price action.

The Cable remained weak yesterday but not to an excessive degree and the initial decline in the early morning hours struggled to find any follow-through and the UK currency spent the rest of the day looking for support. The Pound dropped below the 1.4100 support as soon as European markets came online but found support ahead of the 1.4050 area and the rest of the day was a directionless price action between 1.4050 and 1.4100. Today the release of the Industrial and Manufacturing Production reports could provide some friction and expectations are set for a bearish reading.

Focus of the day
The only piece of important news today comes from the UK as the release of the Industrial and Manufacturing Production levels is bound to be followed closely by traders especially given the lack of anything else to trade upon. Analysts are calling for a correction in both reports and a lower reading could put the Pound under pressure early in the morning but in terms of news or developments the rest of the day is virtually empty apart from a UK GDP reading in the afternoon.

Economic Calendar

 


 

 

Past performance is not indicative of future results. Trading forex, CFDs and equites carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts. The information provided by InvestingBetter.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. InvestingBetter.com are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. InvestingBetter.com and/or its owners will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on InvestingBetter.com. InvestingBetter.com does not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD stays near 1.0800 after upbeat US data

EUR/USD stays near 1.0800 after upbeat US data

EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.

EUR/USD News

GBP/USD stays in daily range above 1.2600

GBP/USD stays in daily range above 1.2600

GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.

GBP/USD News

Gold pulls away from daily highs, holds above $2,200

Gold pulls away from daily highs, holds above $2,200

Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.

Gold News

XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC

XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC

XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase. 

Read more

Portfolio rebalancing and reflation trades emerge into Q2

Portfolio rebalancing and reflation trades emerge into Q2

Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.

Read more

Majors

Cryptocurrencies

Signatures