The European Central Bank, as expected, left interest rates unchanged on Thursday and maintained its commitment to purchasing 20 billion euros ($22.8 billion) a month in bonds. The ECB's deposit rate stands at -0.5%, while its main refinancing operations rate holds at 0%. In a statement, the ECB repeated that its Governing Council expects rates to remain at present or lower levels until there are solid signs stubbornly low inflation is on track to converge with the bank's target of near, but below, 2%. The ECB also reiterated it expects asset purchases to run for as long as needed to underline the accommodative impact of its policy rates, ending them shortly before it starts to raise interest rates. Also as expected, the ECB announced the launch of a review of its monetary policy strategy. ECB President Christine Lagarde is scheduled to hold a news conference at the bank's Frankfurt headquarters at 8:30 a.m. Eastern.
The employment report is good news for Australian Dollar bulls and discouraging news for short-sellers betting on a February rate cut. Now they have to reset the clock to April or May so selling the AUD/USD on rallies may not be sound advice unless the coronavirus scare spooks investors into dumping the currency because of Australia’s ties to China’s economy.
Caution reigned supreme today in markets as Wuhan went into shutdown and those that were unfortunate enough to have China risk to cover were forced to do so amid dwindling liquidity on both the Yuan and SHCOMP.
Dear Traders, The GBP/USD has formed Adam and Adam pattern, which is a stronger variant of a W bullish pattern. Continuation up is expected.
The British pound has flexed some muscle, as GBP/USD has climbed above the 1.31 line for the first time in two weeks. Will the upward move continue?
It’s funny. The news tends to lead investors to believe that gold is a buy when there is uncertainty and fear in the markets, but this type of thinking doesn’t seem to be working at this time.
Nobody expects any policy changes when European Central Bank big shots meet Thursday, but Christine Lagarde could still drop some worthwhile hints about the path ahead.
Investing.com - The safe haven Japanese yen gained against the U.S. dollar Thursday on a sharp bout of risk aversion, as battles to contain the new pneumonia-like virus in China intensified, although volatility remained limited.
It’s a bearish start to the day, with support levels in play. Failure to break back through the support levels would lead to heavier losses in the day.
Employment figures give the Aussie a boost as the focus shifts to the ECB. Will Lagarde follow the BoC with a dovish outlook to sink the EUR?
Based on the early price action and the current price at 1.1085, the direction of the EUR/USD into the close on Wednesday is likely to be determined by trader reaction to a downtrending Gann angle at 1.1093 and an uptrending Gann angle at 1.1071.
Gold markets continue to go back and forth in general, as the market finds the $1550 level is an area of stability. This leads me to believe that we are probably going higher over the longer term, but things are awfully quiet right now.
The Japanese economy has been hit hard by the weak global economy, and the growth forecasts for 2020 could mean more economic turbulence lies ahead.
The US dollar initially tried to rally during the trading session on Wednesday but gave back the gains to show a less than impressive move against the Japanese yen.
The British pound took off during the trading session on Wednesday as we have bounced from a major trend line, broken above the 50 day EMA, and then break even higher from there.
The British pound shot higher against the Japanese yen during trading on Wednesday, as we continue to see upward pressure in general when it comes to this market. Remember, it is highly sensitive to risk appetite so keep that in mind.
The Euro went back and forth during the trading session on Wednesday, as we continue to hang around the 50 day EMA. This is a market that remains very choppy so there isn’t much to do here other than range trade.
The Australian dollar fell to test the previous downtrend line but bounced significantly from there to show signs of resiliency. The hammer that is trying to form is a good sign, and quite frankly it looks as if the Aussie is trying to save itself.