Talking Points:
- EURUSD continues to ease back towards TL from August low.
- EURAUD, EURCAD, EURGBP all near major TL breaks.
- See the October forex seasonality report that favors US Dollar weakness.
In what may simply be a placeholder meeting until December, the European Central Bank meets today against a backdrop of only midlly dovish expectations. While some may be expecting a rate cut or an expansion/extension of the QE program, the most recent Bank Lending Survey figures suggest that the ECB's policies are actually working quite well, and that they just need more time to work their way through the system.
As the ECB weighs these pros and cons about moving on policy, the Euro has been left in a bit of a state of stagnation as it awaits a fresh catalyst. The ECB meeting today fits this bill, although without a hint of potential policy action, EUR-crosses may be setting up a 'sell the rally' opportunity. See the above video for technical considerations in EURUSD, EURGBP, EURAUD, EURCAD, and the USDOLLAR Index.
Read more: AUD/USD Losing Triangle, EUR/AUD Breaking Out Pre-ECB
--- Written by Christopher Vecchio, Currency Strategist
To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com
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