How is your trading today? Hope all is well.
In Masoud's EUR/USD Midweek Review, he mentioned that the European Central Bank will be making a decision of the interest rate of the Euro Zone. The speech that follows will be closely monitored as well for any clues to any economic policies.
Looking at the EUR/USD currency pair above, the short term range has been broken and the currency pair is dipping towards the bottom trend line.
Many investors and traders speculated that the ECB would hike the interest rate due to inflation risks. However it turned out that the European Central Bank decided to let interest rate remain at the current levels. On top of that, it was reported that Mr Trichet apparently suggested that the interest rate will probably remain at the current level in the near future. Following that, a knee jerk reaction occurred and the EUR/USD dipped.
Tomorrow brings us the US Non-Farm Payroll and hence caution is advised. As the previous few US NFP were positive, any unexpected data tomorrow will probably cause much movement in the markets.
Trade Safely.
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