EURUSD impending storm, large bets may once again come on the table.
EURUSD after several days of being stuck in an extremely narrow range of fluctuation at 1.07, the exchange rate is expected to erupt rapidly in one direction or the other depending on President Lagarde’s decision.
After numerous meetings, the day has arrived when the European Central Bank will decide whether to proceed with another 25 basis point interest rate rise or take a brief hold in a contentious meeting.
It might be one of the most difficult decisions in the European Central Bank’s history, as on the one hand, inflation in the Eurozone has shown to be problematic. be rather obstinate, and despite the retreat, prices remain far from the European Central Bank’s targets, but the European economy is on the danger of recession.
Yesterday’s statement on the course of Consumer Inflation in the United States was within estimates, and aside from a transient small-scale disturbance, the exchange rate did not alter substantially.
The fundamental feature of the European currency recently to elicit moderate reactions was on the table once again. However, as predicted, the rise was exceedingly light with little endurance and continuity.
Today’s program includes, in addition to the Ecb’s ruling, key news from the United States, such as the Retail sales and weekly initial unemployment claims are two factors that might add to today’s market volatility.
As is sensible, the attitude of waiting for the ECB’s decision is the best approach. However, without deviating from my core strategy of buying the European currency, especially if we witness big falls at 1,06 or even below this level in the aftermath of a probable hike in interest rates.
