Strategy Video: How the ECB Rate Decision Next Week Impacts EURUSD Now
• The ECB rate decision is due next Thursday at 11:45 GMT - but the market isn't waiting to adjust
• Despite the pullback, the market is far from fully pricing in a full rate hike or stimulus outcome
Euro and EURUSD traders are already looking ahead to next week to gauge the scenarios and market impact of the ECB's monetary policy actions. Since central bank President Mario Draghi clearly warned three weeks ago that the policy group was warming up to an easing move, the currency market's benchmark pair has dropped over 300 pips and tentatively turned a near-two year trend. Even after this move, the market is far from pricing in the full impact of further accommodation from the European bank. That said, the various scenarios and market-moving potential can cool the bear trend that has taken over the Euro's reins. What is the trade potential for the currency and EURUSD between now and the next Thursday's ECB decision? That is the topic of today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.