The European continent, in contrast to the U.S. and England, has reached a crucial moment in its monetary policy. Will the ECB follow the example of the Fed and the BoE and turn to "quantitative easing," i.e. printing money and buying troubled assets? Today‘s ECB announcement at 13:45 CET is expected to signal a move to that quantitative easing, which would mean a strengthening of the EUR / USD pair. But we doubt that the ECB will explicitly declare such a step in the style of the Fed or BoE, still defending its independence? The ECB has only one mandate which is to fight inflation, not for economic growth. It will be enough to lower the interest rate again, say by 25 basis points which is anticipated by the market. In that case the EUR / USD will weaken today.
Accordingly, we put our trading bands for the dollar higher against the majors in today‘s trading, as outlined in detail below.
Intraday Market Outlook for Day Traders
EUR / USD
On a mild recovery path this European morning, the pair is currently trading at 1.3300 from lows around 1.3250. We see some more of this recovery move coming before the ECB’s publication of its monetary policy, but then a turn downwards around the 1.3330 level, bringing the market back to its today’s lows at 1.3250.
GBP / USD
The recent buying mood in the pound slowed down in Asian and early European trading, with the market currently priced at 1.5090. We expect the resistance line for today at approx. 1.5150 not to be broken, if tested at all, and rather project downmoves to the 1.5000 support level.
USD / CHF
The dollar strengthened against the Swiss franc in early European trading and is currently priced at 1.1380. We see that bid tone remaining intact in today’s further hours, leading to levels around 1.1450.
USD / JPY
After a dull Asian session, the dollar picked up steam against the yen in this European morning, with current prices at 99.20 seemingly ready to attack the 100.00 resistance area again. We expect these levels to be tested today, but not broken.
Accordingly, we put our trading bands for the dollar higher against the majors in today‘s trading, as outlined in detail below.
Intraday Market Outlook for Day Traders
EUR / USD
On a mild recovery path this European morning, the pair is currently trading at 1.3300 from lows around 1.3250. We see some more of this recovery move coming before the ECB’s publication of its monetary policy, but then a turn downwards around the 1.3330 level, bringing the market back to its today’s lows at 1.3250.
GBP / USD
The recent buying mood in the pound slowed down in Asian and early European trading, with the market currently priced at 1.5090. We expect the resistance line for today at approx. 1.5150 not to be broken, if tested at all, and rather project downmoves to the 1.5000 support level.
USD / CHF
The dollar strengthened against the Swiss franc in early European trading and is currently priced at 1.1380. We see that bid tone remaining intact in today’s further hours, leading to levels around 1.1450.
USD / JPY
After a dull Asian session, the dollar picked up steam against the yen in this European morning, with current prices at 99.20 seemingly ready to attack the 100.00 resistance area again. We expect these levels to be tested today, but not broken.
