ECB Preview: Euro Strength and More Dovish Calls
Fiona Cincotta September 9, 2020 9:44 PM
The value of the Euro could be in focus as the ECB aims to address negative inflation and the until recently surging value of the currency.
Thursday 10th September
The value of the Euro could be in focus as the ECB aims to address negative inflation and the surging value of the currency.
The latest economic forecasts will be released at this meeting.
The ECB could acknowledge the strong rebound in the economy post lockdown, however they are also likely to remind of continued uncertainty. ECB members hitting the airwaves recently have shown that differences over the central bank’s economic assessment exist.
The EUR/USD is extending losses for a 6th straight day on Wednesday. The pair is testing near term support at $1.1750 as it continues to pull back from the 2 year high of $1.20 reached last week.
A break through this level could see losses extended to $1.17 the confluence of a horizonal support and 50-day moving average, a level which has offered support since late July. A break through here could open the doors to US$1.15.
On the flip side resistance can be seen around $1.1860 prior to $1.1970.
From time to time, GAIN Capital Australia 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.