The euro (EUR) remained range bound versus the US dollar (USD) just ahead of this afternoon’s European Central Bank (ECB) press conference. The single currency, moving above 1.2835 is expecting the speech and press questions to the ECB president, Mario Draghi. Mr Draghi will be faced with tough questions both regarding the Cyprus bailout, for which he has so far remained silent as well as the Italian election results. More than ever, as the continent’s central banker he will be called to answer questions regarding Europe’s banking union.
Gold (XAU) continued losing ground, moving to 1551 dollars per ounce, as demand for the precious metal declined amid higher growth expectations in equities and riskier assets.
The UK100 (FTS) peaked at 6445 before correcting to 6334. Look for strong support at 6340 which may help the index higher
Weekly option volatilities for the EURUSD remained at to 10.25 as fear in the markets remains dominant ahead of the ECB Conference; option premiums for the pair are higher as a result.
The US dollar (USD) has spiked upwards to 94.48 against the Japanese yen (JPY) after the new Bank of Japan (BoJ) Governor, Haruhiko Kuroda, re-affirmed his commitment to a weaker yen. Bond purchases by the bank exceeded forecasts thus increasing the yen money supply. Should lower unemployment come out from the US tomorrow, look for higher highs for the pair
Outlook
EURUSD Pivot Point 1.2805 with a preference to go LONG at 1.2805.
Sentiment is 41% of deals to buy EUR
USDJPY Pivot Point 93.30 with a preference to go LONG at 93.30.
Sentiment is 44% of deals to buy USD
GBPUSD Pivot Point 1.5070 with a preference to go LONG at 1.5070.
Sentiment is 52% of deals to buy GBP
AUDUSD Pivot Point 1.0440 with a preference to go LONG at 1.0440.
Sentiment is 57% of deals to buy AUD
GOLD Pivot Point 1563 with a preference to go SHORT at 1563.
Sentiment is 71% of deals to buy GOLD
OIL Pivot Point 96.00 with a preference to go SHORT at 96.00.
Sentiment is 76% of deals to buy OIL
US 500 Pivot Point 1546 with a preference to go LONG at 1546..
Sentiment is 20% to buy US 500
UK 100 Pivot Point 6335 with a preference to go LONG at 6335.
Sentiment is 24% to buy UK 100
Calendar
GBP – Official Bank Rate at 11:00 (GMT) Forecast 0.50%
EUR – Minimum Bid Rate at 11:45 (GMT) Forecast 0.75%
USD – Unemployment Claims at 11:45 (GMT) Forecast 352K
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
Euro ranging ahead of ECB press conference
The euro (EUR) remained range bound versus the US dollar (USD) just ahead of this afternoon’s European Central Bank (ECB) press conference. The single currency, moving above 1.2835 is expecting the speech and press questions to the ECB president, Mario Draghi. Mr Draghi will be faced with tough questions both regarding the Cyprus bailout, for which he has so far remained silent as well as the Italian election results. More than ever, as the continent’s central banker he will be called to answer questions regarding Europe’s banking union.
Gold (XAU) continued losing ground, moving to 1551 dollars per ounce, as demand for the precious metal declined amid higher growth expectations in equities and riskier assets.
The UK100 (FTS) peaked at 6445 before correcting to 6334. Look for strong support at 6340 which may help the index higher
Weekly option volatilities for the EURUSD remained at to 10.25 as fear in the markets remains dominant ahead of the ECB Conference; option premiums for the pair are higher as a result.
Stay in tune throughout the day with foreign exchange bullets !
Movers & Shakers
USDJPY
The US dollar (USD) has spiked upwards to 94.48 against the Japanese yen (JPY) after the new Bank of Japan (BoJ) Governor, Haruhiko Kuroda, re-affirmed his commitment to a weaker yen. Bond purchases by the bank exceeded forecasts thus increasing the yen money supply. Should lower unemployment come out from the US tomorrow, look for higher highs for the pair
Outlook
EURUSD Pivot Point 1.2805 with a preference to go LONG at 1.2805.
Sentiment is 41% of deals to buy EUR
USDJPY Pivot Point 93.30 with a preference to go LONG at 93.30.
Sentiment is 44% of deals to buy USD
GBPUSD Pivot Point 1.5070 with a preference to go LONG at 1.5070.
Sentiment is 52% of deals to buy GBP
AUDUSD Pivot Point 1.0440 with a preference to go LONG at 1.0440.
Sentiment is 57% of deals to buy AUD
GOLD Pivot Point 1563 with a preference to go SHORT at 1563.
Sentiment is 71% of deals to buy GOLD
OIL Pivot Point 96.00 with a preference to go SHORT at 96.00.
Sentiment is 76% of deals to buy OIL
US 500 Pivot Point 1546 with a preference to go LONG at 1546..
Sentiment is 20% to buy US 500
UK 100 Pivot Point 6335 with a preference to go LONG at 6335.
Sentiment is 24% to buy UK 100
Calendar
GBP – Official Bank Rate at 11:00 (GMT) Forecast 0.50%
EUR – Minimum Bid Rate at 11:45 (GMT) Forecast 0.75%
USD – Unemployment Claims at 11:45 (GMT) Forecast 352K
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
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