Event to pay attention to today:
17:00 GMT+3. EUR – ECB President Christine Lagarde Speaks
EURUSD:
On Tuesday, the EUR/USD pair saw further downside movement, retreating by an additional 0.16% and testing a key technical barrier that could potentially result in new 16-week lows if the euro price base is reached.
On Tuesday, European Central Bank (ECB) President Christine Lagarde made several statements, but their content ranged from the mundane to the unremarkable, which had little impact on the euro’s performance. In a statement released today, ECB President Lagarde said that the ECB was ‘not dissatisfied with what she saw’ but that the ECB ‘cannot jump to the conclusion that the inflation target is a done deal’. This statement inspired absolutely no confidence in the euro and provided little guidance for currency markets, which are seeing the euro retreat against the dollar for the fourth week in a row.
The release of global PMI data is scheduled for Thursday. Market expectations are high for the EU PMI results, with average market forecasts indicating a modest increase in October’s EU services PMI from September’s 51.4 to 51.6.
Trading recommendation: We follow the level of 1.0800, when fixing above it we consider Buy positions, when rebounding we consider Sell positions.
Origin: FreshForex
