The Euro (EUR) is down a bit during the session so far, but losses are marginal ahead of the ECB policy decision, notes Shaun Osborne, chief FX strategist at Scotiabank.
Christine Lagarde to maintain ‘data-driven’ approach
“There is virtually no chance of the ECB cutting interest rates today. Swaps are pricing in a steady policy and comments from top officials have suggested that rate cuts will be made at a measured pace. ECB President Christine Lagarde seems likely to maintain a ‘data-dependent’ approach to the policy outlook, which may sound a bit hawkish amid still relatively elevated inflationary pressures in the services sector.”
“The pair’s exchange rate has eased a bit from yesterday’s peak near 1.0950, but the minor decline is measured and may be taking the form of a small bullish pennant ahead of further gains (above 1.0935/40 this morning).”
“Intraday, daily and weekly trend strength oscillators are aligned bullishly for EUR, suggesting limited downside potential for the pair’s exchange rate and continued risks of a fresh upside push. Support is seen at 1.0900/10. Resistance is seen at 1.0980; above here EUR gains are eyed towards 1.10/1.11.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
