|Day's Range||0.893 - 0.895|
|52 Week Range||0.8642 - 0.9190|
Stocks resurged Thursday afternoon after Bloomberg reported that U.S. negotiators had reached terms of a phase one trade deal that now awaits approval from President Donald Trump
Boris Johnson is heading for the biggest win since Margaret Thatcher in the U.K. Election according to the exit poll revealed at 5pm E.T time. The first prediction of UK voting has sent the pound sharply up and is likely to see markets rise in the morning.
After chairing the central bank’s governing council, she signalled continuity with the loose monetary policies designed by her predecessor Mario Draghi. But she also indicated that she would stick to her own style of communicating with market
Christine Lagarde, the new president of the ECB, presided over her first policy meeting on Thursday. Lagarde didn’t make any policy changes, but her promise to review ECB operations could lead to changes at the powerful central bank.
The Euro has rallied a bit during the trading session on Thursday, breaking above the 200 day EMA. We have since pulled back a bit though, so it looks as if the market is probably going to fade in this general vicinity.
New European Central Bank President Christine Lagarde on Thursday projected an optimistic tone after the central bank left interest rates unchanged.
Investing.com – The pound retreated further on Thursday on fears the ruling Conservative party is set to secure a narrower parliamentary majority than expected after the latest polls showed its lead had shrunk ahead of election results due later.
The European Central Bank on Thursday kept its main deposit rate at negative 0.5%, a move that was anticipated by analysts. The ECB also kept its asset purchase program at 20 billion euros per month. "The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics," the central bank said. Attention now moves to the press conference to be held by new ECB President Christine Lagarde, with traders looking for clues as to the direction of the strategy review she says the central bank will undergo.
Based on the early price action and the current price at 1.1134, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 1.1139.
Yesterday evening we found out that we should not expect any interest rate rises in 2020, which of course was a rather negative information for the American Dollar.
This morning Britain started voting. The results of the General Elections are important not only in the United Kingdom but around the world.
Even without interest-rate changes, the first meeting of the Christine Lagarde era will be closely watched for clues as to how it will differ from that of her predecessor, Mario Draghi, who never once lifted interest rates.
EUR/USD pushed sharply higher on the back of yesterday’s Fed meeting, breaking through a declining trendline in the process. More volatility is expected as the ECB is up next and the UK election takes place.
US equities strengthened US 10-year treasury yields slipped lower, however, down 5bps to 1.79%, providing a fillip to gold prices. But until we ultimately clear the Brexit and US-China risk, the market could struggle to trade directionally.
Investing.com - The European Central Bank left key rates on hold on Thursday, at its first meeting chaired by new president Christine Lagarde.
It’s finally election day in the UK. Can Johnson win a majority and deliver on Brexit or is there more pain to come. There’s also the ECB.
Based on the early trade, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the short-term Fibonacci level at 1.1102 and the downtrending Gann angle at 1.1104.
The Euro has initially fallen during trading on Wednesday but turned around to show signs of life again as we continue to look towards the 1.11 handle above.
Invesing.com – The U.S. dollar was flat on Wednesday, shrugging off data showing stronger-than-expected inflation as traders awaited a Federal Reserve interest-rate decision later today.
French Prime Minister Edouard Philippe said the minimum retirement age will remain 62, but workers will have to work until 64 to get a full pension.
EUR/USD has erased a bulk of the losses that followed Friday’s jobs report and is closing in on December highs ahead of today’s Fed meeting.
In the race for Number 10, the massively awaited poll from YouGov predicts a majority Tory victory, although the race has tightened considerably.
The Euro has rallied a bit during the trading session on Tuesday, reaching towards the 1.11 level. That’s an area that is more thought of as a “fair value” area than anything else right now.