fxs_header_sponsor_anchor

News

EUR/USD traders on high alert into the ECB this week

  • EUR/USD trades below the 4-hour 10 & 20 EMA bearish crossover. 
  • The US dollar is finding its form into critical events this week, including the ECB.

EUR/USD is trading in a tight range ahead of the Tokyo open near to 1.1610. EUR/USD fell from 1.1645 to 1.1610 overnight and remains capped by the 4-hour 10/20 EMA bearish crossover. The downside came from the dollar steadying on Monday afternoon after bouncing off a one-month low. Traders now look ahead to key data events for the week ahead, including the European Central Bank meeting this Thursday.

The forex space is being governed by markets that are weighing the prospects of higher interest rates for different currencies. This makes this weeks calendar critical as it may set the stage for many weeks to come. So far, the rebound in the greenback has come at the expense of the euro, the Japanese yen and the Swiss franc in the main. 

ECB in focus

For today, bar the Aussie inflation readings, will be a quieter day for economics whereby we will see markets focused on US New Home Sales and a speech by the ECB's Villeroy on Tuesday.  The bigger event, however, will be the ECB that meets this week and comments from the bank could shift views on how many inflationary pressures could impact interest rates.

''Whilst it has signalled that December is the meeting to expect a comprehensive update on post-PEPP plans, the current rise in inflation demands attention,'' analysts at ANZ Bank argued. ''Our analysis estimates inflation will prove more persistent than transitory next year, though we also think that the ECB will push back against expectations of rates rises in 2022.''

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.