The euro (EUR) erased gains against the US dollar (USD). The single currency, currently above 1.2805 is losing ground ahead of tomorrow’s press conference by European Central Bank president, Mario Draghi. Mr Draghi is expected to be questioned regarding the ECB’s role in bailing out Cyprus, a subject for which he has remained silent over the past two weeks. Looking ahead, we expect more job creation from the US, as Non-Farm payrolls are released on Friday; while Europe’s unemployment rate has remained high at 12%.
West Texas Intermediate Crude (OIL), currently at 96.64 dollars per barrel has been range bound between 96.00 and 97.50 since the beginning of the month. Higher than expected inventories of the commodity this afternoon may mean a slide to lower lows.
Gold (XAU) lost forty dollars per ounce dropping below 1567 as demand for the precious metal declined amid higher growth expectations in other asset classes and equities.
Weekly option volatilities for the EURUSD climbed to 10.30 as fear in the markets returns ahead of the ECB Conference; at the same time option premiums for the pair edge higher.
The British Pound (GBP) slid lower, losing more than 150 pips, down to 1.5085 against the US dollar (USD). Effects of the lower sterling are already felt in the UK as imported product prices are edging higher. Look ahead for a higher PMI that may help the currency correct some previous losses.
Outlook
EURUSD Pivot Point 1.2825 with a preference to go SHORT at 1.2825.
Sentiment is 40% of deals to buy EUR
USDJPY Pivot Point 93.00 with a preference to go LONG at 93.00.
Sentiment is 46% of deals to buy USD
GBPUSD Pivot Point 1.5135 with a preference to go SHORT at 1.5135.
Sentiment is 51% of deals to buy GBP
AUDUSD Pivot Point 1.0430 with a preference to go LONG at 1.0430.
Sentiment is 58% of deals to buy AUD
GOLD Pivot Point 1577 with a preference to go SHORT at 1577.
Sentiment is 74% of deals to buy GOLD
OIL Pivot Point 97.85 with a preference to go SHORT at 97.85.
Sentiment is 72% of deals to buy OIL
US 500 Pivot Point 1473 with a preference to go LONG at 1473.
Sentiment is 22% to buy US 500
UK 100 Pivot Point 6335 with a preference to go LONG at 6335.
Sentiment is 23% to buy UK 100
Calendar
GBP – Construction PMI at 08:30(GMT) Forecast 47.7
USD – ADP Non-Farm Employment Change at 12:15(GMT) Forecast 203K
OIL – Crude Oil Inventories at 14:30(GMT) Forecast 1.8M
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
Euro drops ahead of ECB press conference
Euro drops ahead of ECB press conference
The euro (EUR) erased gains against the US dollar (USD). The single currency, currently above 1.2805 is losing ground ahead of tomorrow’s press conference by European Central Bank president, Mario Draghi. Mr Draghi is expected to be questioned regarding the ECB’s role in bailing out Cyprus, a subject for which he has remained silent over the past two weeks. Looking ahead, we expect more job creation from the US, as Non-Farm payrolls are released on Friday; while Europe’s unemployment rate has remained high at 12%.
West Texas Intermediate Crude (OIL), currently at 96.64 dollars per barrel has been range bound between 96.00 and 97.50 since the beginning of the month. Higher than expected inventories of the commodity this afternoon may mean a slide to lower lows.
Gold (XAU) lost forty dollars per ounce dropping below 1567 as demand for the precious metal declined amid higher growth expectations in other asset classes and equities.
Weekly option volatilities for the EURUSD climbed to 10.30 as fear in the markets returns ahead of the ECB Conference; at the same time option premiums for the pair edge higher.
Stay in tune throughout the day with foreign exchange bullets !
Movers & Shakers
GBPUSD
The British Pound (GBP) slid lower, losing more than 150 pips, down to 1.5085 against the US dollar (USD). Effects of the lower sterling are already felt in the UK as imported product prices are edging higher. Look ahead for a higher PMI that may help the currency correct some previous losses.
Outlook
EURUSD Pivot Point 1.2825 with a preference to go SHORT at 1.2825.
Sentiment is 40% of deals to buy EUR
USDJPY Pivot Point 93.00 with a preference to go LONG at 93.00.
Sentiment is 46% of deals to buy USD
GBPUSD Pivot Point 1.5135 with a preference to go SHORT at 1.5135.
Sentiment is 51% of deals to buy GBP
AUDUSD Pivot Point 1.0430 with a preference to go LONG at 1.0430.
Sentiment is 58% of deals to buy AUD
GOLD Pivot Point 1577 with a preference to go SHORT at 1577.
Sentiment is 74% of deals to buy GOLD
OIL Pivot Point 97.85 with a preference to go SHORT at 97.85.
Sentiment is 72% of deals to buy OIL
US 500 Pivot Point 1473 with a preference to go LONG at 1473.
Sentiment is 22% to buy US 500
UK 100 Pivot Point 6335 with a preference to go LONG at 6335.
Sentiment is 23% to buy UK 100
Calendar
GBP – Construction PMI at 08:30(GMT) Forecast 47.7
USD – ADP Non-Farm Employment Change at 12:15(GMT) Forecast 203K
OIL – Crude Oil Inventories at 14:30(GMT) Forecast 1.8M
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
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