Not so long ago it was unthinkable that the ECB or the BoE would turn to printing money on a grand scale as they do now. The Forex market obviously expects more of this, because the Fed already hinted at an end of their own money printing which started much earlier than that of Europe. Today, the monetary policy of the BoE and ECB will be published, and we would not be suprised if these institutions signal a more conservative stance: "We have done what is necessary and conventional," like the Fed said a month ago. After such wording, the USD could strengthen, especially now in its oversold situation.
At 13:00 CET, the BoE will publish, and the ECB at 13:45 CET. No interest rate change is expected, but the comments of quantitative easing will be of interest - for the ECB, they will not comment before 14:30 CET. We advocate awaiting these results before engaging in the markets. Meanwhile, we put our trading bands higher for the USD in today‘s trading, as explained in detail in the major pairs‘ list below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
We expect the trading range in the pair, established over the last three days, to continue in today’s market, within the marks of 1.4290 and 1.4120. With the market priced right now in early European trading at 1.4210, we see more of the early upward momentum, but later a down correction today to the 1.4120 levels again.
GBP / USD
Cable lost upward momentum yesterday, recovering somewhat in this European morning, to now 1.6400. Still heavily overbought, we do not expect more upside potential for it, rather projecting a downside level of 1.6250 in today’s trading hours.
USD / CHF
The dollar obviously has found a floor against the Swiss franc, with the market fluctuating between 1.0620 and 1.0750 for three days now. We expect this development to continue today, with the market right now near the lower end of this range at 1.0660. An upmove to the 1.0750 level is likely soon.
USD / JPY
Gaining strength against the yen in early European trading, the dollar is currently priced at 96.50, near a major resistance zone. We do not see much more upside potential for today; a downward move to the 95.70 support zone is more likely.
At 13:00 CET, the BoE will publish, and the ECB at 13:45 CET. No interest rate change is expected, but the comments of quantitative easing will be of interest - for the ECB, they will not comment before 14:30 CET. We advocate awaiting these results before engaging in the markets. Meanwhile, we put our trading bands higher for the USD in today‘s trading, as explained in detail in the major pairs‘ list below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
We expect the trading range in the pair, established over the last three days, to continue in today’s market, within the marks of 1.4290 and 1.4120. With the market priced right now in early European trading at 1.4210, we see more of the early upward momentum, but later a down correction today to the 1.4120 levels again.
GBP / USD
Cable lost upward momentum yesterday, recovering somewhat in this European morning, to now 1.6400. Still heavily overbought, we do not expect more upside potential for it, rather projecting a downside level of 1.6250 in today’s trading hours.
USD / CHF
The dollar obviously has found a floor against the Swiss franc, with the market fluctuating between 1.0620 and 1.0750 for three days now. We expect this development to continue today, with the market right now near the lower end of this range at 1.0660. An upmove to the 1.0750 level is likely soon.
USD / JPY
Gaining strength against the yen in early European trading, the dollar is currently priced at 96.50, near a major resistance zone. We do not see much more upside potential for today; a downward move to the 95.70 support zone is more likely.
