News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Forex: Will the ECB Decision Set Off EURUSD, EURGBP Trades?

Forex: Will the ECB Decision Set Off EURUSD, EURGBP Trades?

John Kicklighter, Chief Strategist

Talking Points:

• The ECB is top event risk in the coming 24 hours, but further easing is a low probability

• Where the euro is most 'oversold' - perhaps EURGBP - a hold on policy can offer a recovery

EURUSD sets a different tone where the dollar has been reinforced by the FOMC minutes and looks to NFPs

Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategiesfor Breakout, Range and Momentum to adapt to these market shifts.

FX traders that are sitting on their hands and waiting for big 'risk' swings to present easy trade setups are missing a more proactive theme. The EURUSD is at the center of a divergent monetary policy view. This past session, the FOMC minutes and ADP payrolls report bolster fortified the reality of the Fed's Taper. And, with a growing level of certainty, event risk like Friday's NFPs will work its amplitude by establishing pace. In the coming session, the Euro will take the wheel back with a closely watched ECB rate decision. Further easing to follow November's rate cut is a low probability, but policy bearings can still support trades on pairs like EURUSD, EURGBP and EURAUD. We talk about active fundamental setups in today's Forex Trading Video.

Sign up for John’s email distribution list, here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.