ECB Preview: Central Bank In Wait & See Mode
Fiona Cincotta January 21, 2021 2:48 AM
After big policy decisions last month, January's meeting is expected to be quieter affair
The ECB is due to give its first policy decision of 2021 on Thursday 21st January at 12:45pm, followed by a press conference at 13:30pm.
Short term risk has turned even further to the downside with higher covid cases and tighter lockdown restrictions. The vaccine rollout is also taking longer than initially hoped.
The strength of the Euro has been in focus over recent weeks and we already know that the ECB is monitoring the exchange rate. Its worth watching out for any comments over the Euro’s elevated value. However, its unlikely that the ECB will take any action.
The EUR/USD is under pressure around 1.21 after rising to an intra session high of 1.2158 and bouncing off resistance of the descending trendline and falling back through the 50 sma on the 4 hour chart. Although the broader up trend seen on the daily chart remains in tact.
The pair currently trades at 1.21 testing the 20 sma on the 4 hour chart. A break through here could see the 1.2060 critical support tested prior to 1.20.
On the upside a move above 1.2160 the descending trendline resistance could pave the way to 1.2220.
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.