EURUSD Range Break Unlikely, ECB's Draghi to Reiterate Policy Stance
EURUSD Analysis and Talking Points
- EUR Garners Support from PBoC Action
- ECB’s Draghi Unlikely to Unveil New Policy Signals
EUR Garners Support from PBoC Action
The Euro continues to hover around the 1.14 handle with little sign suggesting that the Euro will be on course to break its 1.13-1.15 range in the short term. Overnight, the PBoC set its Yuan midpoint rate at the strongest level since July. Consequently, providing a firmer footing for the Euro vs. the greenback. Today is likely to see the Euro somewhat rangebound with sizeable FX option expiries set to magnetise price action. Of note, 1.5bln worth of vanilla options are set at 1.1350, while 1.4bln sit around 1.1400-15.
ECB’s Draghi Unlikely to Unveil New Policy Signals
On the economic schedule, ECB President Draghi is due to speak at 1400GMT. However, after last week’s post rate decision press conference, it is unlikely that the ECB Head will provide new policy signals, thus keeping EUR/USD price action on the lighter side.
EURUSD Price Chart: Daily Time Frame (Aug 2018 – Jan 2019)
EUR TRADING RESOURCES:
- Euro: What Every Trader Needs to Know Just getting started?
- See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.