The single European currency is in a mild recovery mode having moved well away from the 1,10 lows it was at yesterday in anticipation of the European Central Bank meeting.

Yesterday's Ecb meeting and President Lagarde's speech did not surprise, the decision to cut 25 basis points was fully discounted by the markets while Lagarde avoided giving any clear signals about the central bank's intentions at the next meetings.

Bets on another 25 basis points cut by the end of the year remain high but the 4 months is quite a long time and depending on the economic data possible changes could be on the table.

Ηaving left behind the decision of the European central bank, investors are now concentrating their interest on next Wednesday when the Fed is expected to take a similar decision.

After US consumer price inflation data released on Wednesday which was broadly close to estimates bets for 50 basis points cut have almost  been eliminated and such a decision would be a big surprise and affect the US dollar quite negatively.

The 1,10 level which was very close to the breakdown eventually proved to be a strong resistance and remains the closest challenge for the US dollar in its effort to find better prices.

Despite the flurry of news and important meetings the overall picture of the market remains the same with a narrow range remaining on the table as investors remain cautious and although the European currency has been in the spotlight in previus weeks, the potential for it to break through quite easily the levels of 1.12 remains questionable.

On today's agenda the only thing that stands out is the University of Michigan's survey of consumer sentiment in US, an indicator of considerable importance that markets often "listen" to.

There is no change in my thinking, I remain on hold waiting 1,12 level  for a possible purchase of the US currency.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin 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 invest in foreign exchange 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 foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD Weekly Forecast: Sellers gain confidence alongside the Fed

EUR/USD Weekly Forecast: Sellers gain confidence alongside the Fed Premium

The EUR/USD pair fell towards a fresh two-month low of 1.0900, finishing the second consecutive week in negative though little changed at around 1.0940.
Read full analysis
GBP/USD Weekly Forecast: Pound Sterling stays vulnerable ahead of UK inflation data

GBP/USD Weekly Forecast: Pound Sterling stays vulnerable ahead of UK inflation data Premium

The Pound Sterling (GBP) booked the second straight weekly loss against the US Dollar (USD), sending the GBP/USD pair to the lowest level in a month below 1.3050.

Read full analysis
Gold Weekly Forecast: XAU/USD holds above key support area after bearish action to start week

Gold Weekly Forecast: XAU/USD holds above key support area after bearish action to start week Premium

Gold (XAU/USD) declined sharply in the first half of the week but regained its traction after coming within a touching distance of $2,600.

Read full analysis
Bitcoin Weekly Forecast: Will BTC decline further?

Bitcoin Weekly Forecast: Will BTC decline further?

Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.

Read full analysis
RBA widely expected to keep key interest rate unchanged amid persisting price pressures

RBA widely expected to keep key interest rate unchanged amid persisting price pressures

The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.

Read more
Five best Forex brokers in 2024

Five best Forex brokers in 2024

VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

Read More

Majors

Cryptocurrencies

Signatures