ECB meeting is happening later tonight, and all eyes are about to turn to Frankfurt and Mario Draghi spinning the low inflation environment that the EU is still in.
EU economy is having diffuclty going on under chronically low inflation numbers and Euro traders are eagerly awaiting what policy moves that Draghi has left up the long white sleeve of his immaculately tailored business shirt!
Pumping money into the economy via the bank’s bond buying program hasn’t given the uptick that Draghi and his men were looking for, and any alterations to the program will be what traders tonight are hanging out to hear.
From a technical point of view, EUR/USD wants to bounce. Price is in the middle of a weekly range and has been printing higher lows on the daily chart.
Will Draghi give it the kick?
Moving forward and we yesterday asked the question would the ISM manufacturing miss mean no rate hike from the Fed?
Midway through the Asian session, we then started to see some quotes hitting the newswires from the Fed’s Williams:
Well the Williams that matters is still holding out hope… https://t.co/VdcVMjJhwj
— Dane Williams (@danewilliamsau) September 7, 2016
How unconvincing. A sentiment that the US Dollar obviously agrees with, coming nowhere near to retracing the ISM news drop, and more than likely bouncing on the technical level rather than the comments.
With USD where it currently sits, if Draghi comes to the party tonight we could see a serious EUR/USD bounce.
AUD Trade Balance
EUR Minimum Bid Rate
EUR ECB Press Conference
USD Unemployment Claims
USD Crude Oil Inventories
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This is a guest post originally appeared on Vantage FX. Reposted with permission.