rounded corner
rounded corner
top border

Euro tests $1.10 but ECB doves could be hard to satisfy


Bookmark and Share

The European Central Bank (ECB) meeting is what matters the most to worldwide traders today. The ECB is expected to take monetary action at todays meeting to give a boost to the depressed Euro zone economy as a result of the rising global trade tensions, slower growth and Brexit uncertainties. The ECB could lower its deposit rate by 10 basis points to -0.50 %, announce a new round of asset purchases up to 50 billion euros per month over at least a year and put in place a system aiming to exempt a third of banks excess reserves from the deposit rate. It is obvious that the market has highly dovish expectations from Mario Draghi. But high expectations also mean easy disappointment. Hence the euros mood will mostly depend on how investors react to a more or less dovish decision at todays ECB meeting.

The euro bears have begun flirting with the 1.10 mark against the US dollar on Wednesdays session. A sufficiently dovish ECB decision could send the EURUSD sustainably below this level. But if the ECB fails to meet investors expectations, buyers will be happy to step in at two-year lows. Put options trail below 1.1040 at todays expiry.

Read the full LCG article

https://www.lcg.com/int/analysis-education/market-reports/articles/euro-tests-110-but-ecb-doves-could-be-hard-to-satisfy/

Opening calls

FTSE to open 32 points higher at 7370

DAX to open 65 points higher at 12424



Recent articles from this author



About the author


Ipek Ozkardeskaya is a senior analyst at MBAex with a solid experience in the financial industry. She has strong technical background in economics and quantitative finance. Previously, she worked as a senior market analyst in London Capital Group, FX strategist in Swissquote Bank and as a client sales executive at HSBC Private Bank in Geneva. She also developed quantitative models in automatic trading as part of BCV’s Structured Products team. Ipek has a Master’s degree in Financial Engineering & Risk Management and a Bachelor degree in Economics from University of Lausanne.
 
Contributing  author since 11/09/2017

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2019 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy