The ECB convenes to to make its monthly rate decision as the level of inflation remains low, but is it low enough for using the “nuclear option” of setting a negative deposit rate? Probably not. Nevertheless, the ECB could still take action in the face of strong exchange rate. In addition, there is a “wild card” of the ECB’s 2016 staff projections.
Here is the background, the options and 4 scenarios for the ECB decision.
The level of…Continue
EUR/USD has steadied on Tuesday, as the pair trades in the mid-1.37 range in the European session. The standoff in the Ukraine continues to rattle markets around the world. On Monday, US Manufacturing PMI improved in February and beat the estimate. Tuesday has little action on the release front, with just three releases on the schedule. Spanish Unemployment Change posted a small decline, surprising the markets which had…Continue
EUR/USD began the trading week with a gap lower from the highs it reached on Friday, as the situation in the Ukraine continues deteriorating and is currently taking away the focus from the ECB decision later in the week. The Russian army is effectively in control of the Crimea peninsula and could advance further into other eastern regions of the Ukraine. The large outstanding debt the country has worry many. A long list…Continue
EUR/USD had an excellent week, breaking the double top and reaching a 2 month high. Is this the beginning of a big rally or just a short lived move? Manufacturing and Services PMI’s, German Industrial Production and the all important rate decision are the highlights of this week. Here is an outlook on the major events and an updated technical analysis for EUR/USD, now on higher…Continue