With the ECB meeting later tonight, all eyes turn to Frankfurt and how Mario Draghi will spin the low inflation environment that the EU continues to find itself in.
We know that the EU economy is struggling under chronically low inflation numbers and Euro traders are eagerly awaiting what policy moves that Draghi has left up the long white sleeve of his immaculately tailored business shirt!
Pumping money into the economy via the bank’s bond buying program hasn’t given the uptick that Draghi and his men were looking for, and any alterations to the program will be what traders tonight are hanging out to hear.
From a technical point of view, EUR/USD wants to bounce. Price is in the middle of a weekly range and has been printing higher lows on the daily chart.
Will Draghi give it the kick?
Moving forward and we yesterday asked the question would the ISM manufacturing miss mean no rate hike from the Fed?
Midway through the Asian session, we then started to see some quotes hitting the newswires from the Fed’s Williams:
Well the Williams that matters is still holding out hope… https://t.co/VdcVMjJhwj
— Dane Williams (@danewilliamsau) September 7, 2016
How unconvincing. A sentiment that the US Dollar obviously agrees with, coming nowhere near to retracing the ISM news drop, and more than likely bouncing on the technical level rather than the comments.
With USD where it currently sits, if Draghi comes to the party tonight we could see a serious EUR/USD bounce.
On the Calendar Thursday:
AUD Trade Balance
EUR Minimum Bid Rate
EUR ECB Press Conference
USD Unemployment Claims
USD Crude Oil Inventories
Are you trading forex with Vantage FX? Make the switch today.
Dane Williams – @VantageFX
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.