Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD: calm before storm on Thursday
Information is not investment advice
What will happen?
Traders can’t wait for Thursday to come! Why? Two significant events will be out: the US inflation report and the ECB policy decision. They will probably shake the markets!
What to expect from ECB?
ECB is expected to avoid discussing any changes as the German ZEW economic sentiment came out worse than expected, that’s why the bank doesn’t have enough reasons to tighten the policy.
What to expect from US inflation?
If the US inflation is greater than the market forecast, the Federal Reserve may start discussing tapering (cutting asset purchases), which in theory would push the USD up. In the opposite scenario, if the US inflation is less than anticipated, the USD may weaken. However, it seems that traders do not expect the Fed to react even if inflation is hot as according to the central bank, inflation is only transitory. No action from the Fed – the USD is likely to fall. Follow the report and catch the overall market flow!
Tech outlook
On the EUR/USD chart, the diamond pattern has recently occurred. The pair broke through the lower line at the right, which meant the trend changed its direction downwards and it was interpreted as a sell signal. The pair dropped to 1.2100. From that point, EUR/USD has recovered some of its losses and started modestly rising.
The pair has already crossed the 50-period moving average. It needs to break above the 100-period moving average of 1.2200 as well to confirm the bullish momentum. If it manages to cross it, the way up to the high of June 3 at 1.2215 will be open.
On the flip side, if it drops below the support zone of 1.2170-1.2160, it may fall to the 200-period moving average of 1.2140 and then to the low of late Mat at 1.2130.
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
Popular
United Nations Call the Fed to Cut Rates
A United Nations agency is warning that the central bank’s actions create a high risk of pushing the global economy into recession.
It’s Time to Look at New Zealand
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
The CAD vs. the World: Mid-Term Scenarios for the Currency
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
Choose your payment system
