Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
|Traders are impatiently waiting for the European Central Bank’s meeting on October 26. The regulator will publish its monetary policy decision at 14:45 MT time. The ECB President Mario Draghi will hold a press conference at 15:30 MT time.|
|The ECB is expected to announce reductions in its asset purchases. The euro has been strengthening on such expectations since the start of the summer. If the ECB fulfills the market’s expectations, the euro will retain strength. If the central bank disappoints, the euro will plummet.|
|Be ready to a spike in volatility during Mario Draghi’s press conference. If you decide to trade on this event, remember to apply the rules of risk management.|
The EUR made a significant rise on the news of the stimulus expansion. Will it last long?
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.