Frank Walbaum
FX Strategies.Asia
Important news for the day
Thu, 17th, 14:15 CET EU Interest rate decision
ECB rate decision
Today, the European Central Bank will hold their rate decision and it is expected that rates will be reduced by 25 basis points to 3.4%. This would mark another rate- cut after the last meeting in September. As the EUR recently started to weaken a further slide in rates against other currencies might be seen. The economy in Europe is under pressure as especially the powerhouse of Germany disappoints. Lower rates should hence support the economy causing corporations to get access to cheaper financing.
Market talk
The strength of the Dollar continue yesterday and the Dollar index also crossed the potential resistance zone in form of the 50- moving average based on the weekly chart. If the upside potential continues, a stronger Greenback should be expected. In particular the chances that the EUR will head lower after the interest rate decision of the ECB today might offer further strength of the Dollar. That said the general risk sentiment remains positive with equities rising to higher levels.
Tendencies in the markets
- Equities positive, USD stronger, cryptos positive, oil weak, metals positive, JPY weaker
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This Webinar is purely for information purposes. Transactions or orders are for illustrative purposes only and should not be copied by traders. The content has been carefully compiled. However, no liability can be accepted by FX Strategies. Asia and under no circumstances should this material replace a consultation with a certified financial, investment or investment advisor in terms of their accuracy. Further information on our risk warnings can be found on our website under fxstrategies.asia.
Recommended Content
Editors’ Picks
How will Euro react to European Central Bank policy decisions? – LIVE
The European Central Bank (ECB) is set to lower key rates again in October amid growing signs of a worsening economic outlook and continuous disinflation. The Euro's valuation could be impacted by the ECB's language and President Lagarde's remarks.
GBP/USD retakes 1.3000 ahead of US Retail Sales data
GBP/USD is grinding higher to retest 1.3000 in the European session on Thursday. The pair benefits from a recovery in risk sentiment and a pause in the US Dollar advance. All eyes now remain on the US Retail Sales data for fresh trading directives.
Gold rises toward $2,700, sets new record-high
Gold price prolongs its one-week-old uptrend for the third straight day and trades at a new record-high above $2,680. Investors await the weekly Initial Jobless Claims and September Retail Sales data releases from the US.
Bitcoin: Recent rally fuels “Uptober” hopes
Bitcoin demand appears to be picking up, according to a CryptoQuant report. BTC’s performance since the fourth halving closely resembles that of the third halving, when prices increased sharply.
Another unconvincing policy briefing fails to inspire confidence
Chinese authorities are playing the long game, trying to keep investors focused on the bigger picture, multiple stimulus measures spread out over time, with a bit of subtle bid support from state-backed institutions.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.