Real time news of the market
REAL TIME NEWS The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: ... Fed speculation is likely to be a top fundamental theme for the coming week even though the FOMC decision isn't until June 16th. Meanwhile, $EURUSD is leaning into a bear break, but does it find follow through? dailyfx.com/for...-This-Week.html https... Euro Forecast: EUR/USD Price Outlook Stable, ECB Tapering on Back Burner Euro Forecast: EUR/USD Price Outlook Stable, ECB Tapering on Back Burner
Jun 6, 2021 5:00 AM +01:00 Martin Essex, MSTA, Analyst FUNDAMENTAL EURO FORECAST: NEUTRAL Any hopes for clarity on when the ECB will start tightening monetary policy will likely be dashed after the Eurozone central bank’s policymaking Governing Council ends its meeting Thursday. ECB President Christine Lagarde will doubtless be pressed hard on when it will begin tapering its monetary stimulus but she will most likely stay tight-lipped at her post-meeting press conference. That should leave EUR/USD around its current level, although there’s a risk it will strengthen mildly if, as is probable, the ECB staff raise their projections for inflation. Advertisement
EURO PRICE OUTLOOK DEPENDENT ON ECB There’s just one thing traders will want to know after the European Central Bank’s policymaking Governing Council ends its June meeting Thursday: when it will begin tapering its monetary-stimulus programs. Sadly, they will likely be disappointed, both by the post-meeting statement and by President Christine Lagarde at her subsequent press conference.
The ECB seems keen to avoid all mention of withdrawing stimulus for fear that even discussing it will raise Eurozone bond yields and damage the bloc’s recovery from the slump caused by the coronavirus pandemic. In due course it will have to, but this month is too early so instead traders might be better off focusing on the ECB staff’s projections for inflation.
EUROZONE INFLATION CENTER STAGE These projections will almost certainly be increased, and that should support the Euro after recent dovish comments by Governing Council members. Germany’s Isabel Schnabel, for example, said last month that inflation in Germany might rise above 3% this year but added that it would be only a “short-term fluctuation” that the ECB’s monetary policy strategy has to “look through.”
Even a sharp increase in projected inflation, however, would likely have only a modest impact on EUR/USD, but it would probably stave off a continuation of last week’s downturn.
EUR/USD PRICE CHART, DAILY TIMEFRAME (DECEMBER 23, 2020 – JUNE 4, 2021) Euro Forecast: EUR/USD Price Outlook Stable, ECB Tapering on Back Burner Source: IG (You can click on it for a larger image)
JUN 08 ( 09:06 GMT )
RECOMMENDED BY MARTIN ESSEX, MSTA Trading Sentiment Register for webinar ZEW INDEX ON THE SLATE Elsewhere, the only major Eurozone data point slated for release this coming week is the ZEW indicator of economic sentiment in Germany, due Tuesday. The consensus forecast is for a small rise to 85.0 in June from the previous 84.4. German factory orders and industrial production in April, as well as the third estimate of Eurozone GDP in the first quarter, can all be safely ignored as too historic to provide any new information.
EUR/USD Mixed Data provided by of clients are net short. CHANGE IN LONGS SHORTS OI DAILY -21% -2% -9% WEEKLY 9% -2% 2% What does it mean for price action? Get My Guide Check out our guide to the top trading opportunities in 2021 by clicking here
This post are Written by Martin Essex, Analyst forex news and technical analysis on the trends that influence the global currency markets.
Martin Essex, MSTA Analyst RELATED ARTICLES Markets Week Ahead: Dow Jones, Gold, Canadian Dollar, BoC, Euro, ECB, US CPI Markets Week Ahead: Dow Jones, Gold, Canadian Dollar, BoC, Euro, ECB, US CPI Jun 6, 2021 5:00 PM +01:00 Weekly Technical US Dollar Forecast: Rally Fizzling, Bears Retaking Control Weekly Technical US Dollar Forecast: Rally Fizzling, Bears Retaking Control Jun 6, 2021 3:00 PM +01:00 Nasdaq 100 Forecast: Is the Market Prepared for Fed Tapering Stimulus? Nasdaq 100 Forecast: Is the Market Prepared for Fed Tapering Stimulus? Jun 6, 2021 1:00 PM +01:00 Gold Price Outlook: XAU/USD at Risk to US CPI Beat Before June Fed Rate Decision Gold Price Outlook: XAU/USD at Risk to US CPI Beat Before June Fed Rate Decision Jun 5, 2021 9:00 PM +01:00 Advertisement RATES EUR/USD MIXED Cookies Risk Warning Privacy T&C Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks .
Working at steem share information. Win togather See you up there Support each other
This post are Written by Martin Essex, Analyst forex news and technical analysis on the trends