ECB aftermath, Dollar weakness and risk sentiment analyzed
|Important news for the day
- Fri, 18th, 08:00 CET UK Retail sales
ECB rate cut
As previously expected the European Central Bank had reduced rates by 25 basis points to 3.4%. The communication from Christine Lagarde thereafter did not offer a major news and hence the Euro fell slightly as a result. The policy of the Bank will remain restrictive and data dependant. A general underlying economic weakness in the Eurozone has been acknowledged. The german DAX had yet stayed positive and might offer further upside potential. A breakout to higher levels might be in the making.
Market talk
The Dollar might show some signs of a bearish reversal before the end of the week. The Dollar Index might face some downside potential and if it would close below the 50- moving average based on the weekly chart some weakness in the Dollar might return. Vice versa the same can also be seen in the EURUSD currency pair. The price currently trades below the same moving average on the weekly chart but could be ready to trade back above it, which might hence indicate some positive sentiment for the Eurozone. On another note precious metals have started to gear up steam again. Gold keeps running higher and Silver might be ready to break to the upside should the USD 32.00 level be cleared.
Tendencies in the markets
- Equities positive, USD weaker, cryptos positive, oil sideways, metals stronger, JPY weaker.
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