Eyes are on ECB president Christine Largarde tomorrow to see if she will echo her colleague’s concerns at the bank’s policy meeting on Thursday, as ECB policymakers warn that if the currency keeps appreciating it will weigh on exports, drag down prices and intensify pressure for more monetary stimulus, holding back on the Euros economic recovery.
I am not expecting further reduction of interest rates just yet, but instead a firm word that actions will be taken if necessary, which could lead to bearish momentum.
Continued upside dollar momentum is also a added factor, with recent risk off sentiment indicating a further shift of assets from equities to currencies
So far it seems investors are attempting to price in Largarde attempt at reducing the euro /usd rate, with a break of the flag formation , allowing a great opportunity for a potential short on the re-test with excellent risk reward.
I am not expecting further reduction of interest rates just yet, but instead a firm word that actions will be taken if necessary, which could lead to bearish momentum.
Continued upside dollar momentum is also a added factor, with recent risk off sentiment indicating a further shift of assets from equities to currencies
So far it seems investors are attempting to price in Largarde attempt at reducing the euro /usd rate, with a break of the flag formation , allowing a great opportunity for a potential short on the re-test with excellent risk reward.
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1/2 POSITION STILL OPEN ON BREAK EVEN
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