Event Risk Picks Up but Can EURUSD, GBPUSD, USDJPY Forge Trend
• The next 48 hours carries plenty of event risk - with the ECB rate decision and US NFPs as top billing
• Much of the focus will be turned to 'monetary policy', but don't forget the explosive influence of 'risk'
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Some of the major Euro crosses - including EURUSD and EURGBP - have come up to major, multi-year support levels. That is good timing from the technical side as we are heading into an event risk that can drive the next leg of the bear trend depending on its outcome: the ECB rate decision. However, between the scale of the technical level, the moderation expected in financial markets this time of year and adjustment already made for monetary policy easing in the Eurozone; it is not easy to facilitate the next move lower. In today's Strategy Video, we discuss the scenarios for this event along with the expectations and cues to keep in mind for setting reasonable trades.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.