Never miss a story from Nick Cawley

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Nick Cawley

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points

- Monetary policy left unchanged, as expected, attention turns to the press conference.

- ECB reiterates that key rates will remain at their present levels for an extended period of time.

Check out our new Trading Guides: they’re free and have been updated for the fourth quarter of 2017.

The European Central Bank (ECB) left all monetary policy measures unchanged at its last meeting of 2017. Interest Rate was left at 0%, the Marginal Lending Facility at 0.25% and the Deposit Facility Rate at -0.40%. The single currency barely moved post-release with trader’s attention now turning to ECB President Mario Draghi’s last press conference of 2017 and the quarterly ECB staff projections on growth and inflation.

The central bank said that interest rates would remain at their present levels from an extended period of time and well past the horizon of the asset purchase program. The ECB recently said that it would continue buying bonds at a slower rate of EUR30 billion a month from January to September 2018.

EUR/USD Price Chart One Minute Timeframe (December 14, 2017)

EUR Waits For ECB Press Conference After Policy Left Unchanged

Chart by IG

IG Client Sentiment data show 41.1% of traders are net-long EUR/USD with the ratio of traders short to long at 1.43 to 1. The number of traders net-long is 7.3% lower than yesterday and 7.4% lower from last week, while the number of traders net-short is 7.8% higher than yesterday and 2.5% lower from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bullish contrarian trading bias.

DailyFX provide a wide range of free, constantly updated Trading Guides including Forex for Beginners, Top Trading Lessons and The Number One Mistake Traders Make.

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1