ECB Preview: Euro Strength and More Dovish Calls
Fiona Cincotta September 9, 2020 12:44 PM
The value of the Euro could be in focus as the ECB aims to address negative inflation and the until recently surging value of the currency.
Thursday 10th September
The value of the Euro could be in focus as the ECB aims to address negative inflation and the surging value of the currency.
The latest economic forecasts will be released at this meeting.
The ECB could acknowledge the strong rebound in the economy post lockdown, however they are also likely to remind of continued uncertainty. ECB members hitting the airwaves recently have shown that differences over the central bank’s economic assessment exist.
The EUR/USD is extending losses for a 6th straight day on Wednesday. The pair is testing near term support at $1.1750 as it continues to pull back from the 2 year high of $1.20 reached last week.
A break through this level could see losses extended to $1.17 the confluence of a horizonal support and 50-day moving average, a level which has offered support since late July. A break through here could open the doors to US$1.15.
On the flip side resistance can be seen around $1.1860 prior to $1.1970.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.