|Day's Range||1.104 - 1.106|
|52 Week Range||1.0882 - 1.1514|
Investing.com - The U.S. dollar is showing some strength against the safe haven Japanese yen Friday as a degree of calmness returns to traders who have fretted all week over the new pneumonia-like virus in China.
It’s a busy day ahead, with private sector PMIs for January to set the tone. Expect retail sales figures from Canada to also drive the Loonie.
Christine Lagarde, the new head of the European Central Bank, has announced a comprehensive review of ECB of its monetary policy. The review is scheduled to take one year, and Lagarde has said that she will be listening carefully as she attempts to modernize the ECB.
The Euro initially tried to rally during the trading session on Thursday but gave back the gains to break lower yet again. As the ECB keeps interest-rate at zero, they sound extraordinarily dovish.
Based on the early price action and the current price at 1.1090, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the major 50% level at 1.1096.
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 range in EUR/USD has been narrowing through the week but volatility is expected later today as the European Central bank meets to discuss monetary policy.
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.
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.
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.
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.
Investing.com - The U.S. dollar edged higher Wednesday as traders took a calmer view of the emergence of the pneumonia-like virus in China, but its gains were minimal and caution was still abundant.
During the trading session on Tuesday, we have seen the Euro rally significantly to break above the top of the hammer from the Monday candlestick. This was facilitated by a stronger than anticipated German ZEW.
IMF attributes ‘the lion’s share’ of downward revision to ‘more subdued growth forecast’ for India. Asia’s third-largest economy, is expected to grow by 5.8% in 2020, a 1.2 percentage point markdown from the organization’s October forecast.