Trade Setups in EUR/USD, EUR/GBP Ahead of ECB
- EURUSD holds lows ahead of last ECB meeting of 2014.
- EURGBP moves into lower half of symmetrical triangle.
- See the 'high' importance events on the DailyFX Economic Calendar.
Due to incoming inflation data and persistently falling inflation expectations, policymakers have found it necessary to keep the door open for sovereign QE, despite the legal hurdles that remain, as Bundesbank President and hawkish ECB policymaker Jens Weidmann has pointed out.
The threat of sovereign QE itself may not be driving the Euro right now, but rather the threat of the €1 trillion balance sheet expansion. The last time that happened, in the form of the LTROs in December 2011 and February 2012, the Euro suffered immensely against its major counterparts.
See the above video for technical considerations in EURUSD and EURGBP.
--- Written by Christopher Vecchio, Currency Strategist
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