Central Bank Activity Heats Up, Drives Volatility In FX Market
ECB Keeps Rates Unchanged, Focus Shifts on The Fed
Bog& Giulvezan
Subterminal week the European Central Bank kept the interest rank unchanged, as expected. The medium of exchange insurance policy didn't suffer some changes, and ECB President Lagarde did little to move the Euro during the virtual press conference but despite this relative lack of catalysts, the EUR/USD bounced at fend for and accomplished a optimistic calendar week.
The markets are shifting to en&germent-on mode repayable to hopes that the fresh minted Biden administration bequeath push a stimulus programme through Coition and that the rollout of the coronavirus vaccine will supercharge economic growth. This could potentially bastardly that we will see money bleed out of the secure-haven US Dollar and into riskier assets or other currencies. Such a scenario would be bullish for EUR/USD only a lot will look on the data discharged passim the workweek.
Key Events for the Week Leading
Tuesday, January 26 at 3:00 pm GMT, The Conference Board Inc. will exit the Consumer Confidence, which is a survey that gauges the overall worldly situation and is derived from the opinions of about 3,000 U.S. households. The report acts atomic number 3 a leading indicator of consumer outlay and usually has a sensitive bear upon; notwithstandin, the expected figure is 88.9, a small commute from the previous 88.6.
Wednesday, January 27 at 7:00 pm Greenwich Mean Time, the FOMC will release their Monetary Insurance Statement, which contains the Federal Cash in hand Rate decision likewise Eastern Samoa the economic reasons that discovered it. The order is not prospective to change but the press conference that follows English hawthorn tender clues about subsequent policy changes, thusly triggering volatility.
The last major release of the week will be the U.S. Advance GDP, regular for Thursday, January 28 at 1:30 pm GMT. The expected quarterly transfer is 4.2%, while the previous was 33.4%, and considering that the Advance rendering is the earliest, it tends to undergo the highest impact.
Chart Analysis – EUR/USD
The pair is currently trading at 1.2160, in closemouthed vicinity of 1.2175 resistance, after a perfect bounce that happened right on 1.2060 keep. Terms moved preceding the bearish trend credit line and is sitting just above the 100 periods Exponential Moving Average (4-time of day chart) just we stool see that the unalterable few candles display long-staple wicks and small bodies, which is a sign of market indecision.
Adding to the signs of indecision is the 100 EMA, which is at present stirring flat, and the put over of the MACD lines, which are coming together, indicating a drop in momentum. The RSI is neutral, thus it is non of so much help.
If movement picks skyward and the bulls deal to boon a day by day candle above 1.2175 resistance, we testament promising see a touch of 1.2220 operating room even a break, depending on the data scheduled for release this week. On the other hand, a bounce lower from the current level will make 1.2060 the new target.
Source: https://www.binaryoptions.net/central-bank-activity-heats-up-drives-volatility-in-fx-market/
Posted by: canadacoundtowned.blogspot.com
0 Response to "Central Bank Activity Heats Up, Drives Volatility In FX Market"
Post a Comment