Here are a short wrap of the latest news and the tech analysis of EUR/USD, AUD/USD, and gold.
Trading EUR: await news from the ECB
The ECB Monetary Policy Meeting Accounts will be released at 14:30 MT on January 16
The interest rate of 0% is out of the question for the ECB in the foreseeable future, as per the latest press releases. The inflation in the Eurozone still hasn’t reached the 2% target and is not expected to do that in the upcoming months. There are more and more forecasts that promise the further slowdown of the European economy. It’s hard to imagine that the Monetary Policy Meeting Accounts will change the picture. However, although the ECB President Christine Lagarde said previously that she is neither a hawk nor a dove, she mentioned that the quantitative easing will continue “as long as necessary”. We may have more clues on that in the document. In turn, more clues mean trade opportunities. If this policy is confirmed, the EUR will experience selling pressure.
- If the document presses on quantitative easing, the EUR will be under pressure;
- If the document is more hawkish than expected, the EUR will turn up.
The Australian economy has been on a steady recovery path, and now we have a very symbolic confirmation that S&P ASX 200 is about to cross 7000!
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The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.