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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Video: EURUSD Uneasy Over Stimulus Ruling, Pound Mixed Response to CPI

Video: EURUSD Uneasy Over Stimulus Ruling, Pound Mixed Response to CPI

John Kicklighter, Chief Strategist

Talking Points:

• Top event risk this past session in UK CPI wouldn't see a clear bullish or bearish outcome for GBP

• A top EU Court ruling on the ECB's OMT program could trouble QE waters and send the Euro reeling

• Risk trends suffered another wave of nausea but once again are short of the critical breaks

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

Both risk-based volatility and monetary policy-derived trend development stirred the markets this past session. The S&P 500 suffered an aggressive intraday reversal Tuesday that drug Yen crosses and other speculative-leaning assets with it. Yet, as turbulent as the markets were; the unspoken 'lines in the sand' were not crossed. The most prominent hold-out to speculative rebalancing, the S&P 500, has inched closer to a 24-month bullish channel floor with a sense of ill intention. Risk weighs heavy on traders' minds, but monetary policy is more productive - and it may actually prove the ultimate flip on sentiment itself. This past session a near 15-year low in UK inflation has reinforced a downgraded BoE rate forecast, but core figures complicated the picture enough to prevent a clear bullish or bearish response from the Pound. Yet, between rate downgrade and risk aversion, I have stepped into GBPJPY. Ahead, risk and rate watchers will be watching an important EU court advisement on the ECB's OMT program a week before the official rate decision. We discuss what is moving the markets in today's 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.

DISCLOSURES