2 Sep 2013
EUR/USD keeps the narrow range
FXstreet.com (Edinburgh) -The <a href="http://www.fxstreet.com/technical-studies/currencies/eurusd/">EUR/USD is now running out of steam and hovering over 1.3210/15 on Monday, as choppiness continues to prevail amongst market participants.
EUR/USD focus on Thursday’s ECB
Next Thursday the BCE will hold its monthly monetary policy meeting. Despite market consensus expecting the central bank to leave its policy on hold, scepticism is on the rise in the FX space regarding the current forward guidance introduced at the beginning of July. According to Strategist Elwin de Groot at Rabobank, “”In our view, the most likely scenario therefore is that Mr. Draghi will repeat the ECB’s forward guidance and that current rate hike expectations are not warranted. We do not expect any tangible measures to support its call, although Draghi will obviously mention some of the options… To satisfy those looking for something ‘new’, the ECB president may reflect on the progress regarding the discussion about the introduction of Governing Council meeting minutes”.
EUR/USD levels to watch
At the moment the pair is up 0.06% at 1.3223 with the next hurdle at 1.3255 (high Aug.30) followed by 1.3298 (low Aug.22) and finally 1.3322 (low Aug.27). On the downside, a break below 1.3192 (low Sep.2) would open the door to 1.3173 (low Aug.30) and then 1.3143 (MA200d).
EUR/USD focus on Thursday’s ECB
Next Thursday the BCE will hold its monthly monetary policy meeting. Despite market consensus expecting the central bank to leave its policy on hold, scepticism is on the rise in the FX space regarding the current forward guidance introduced at the beginning of July. According to Strategist Elwin de Groot at Rabobank, “”In our view, the most likely scenario therefore is that Mr. Draghi will repeat the ECB’s forward guidance and that current rate hike expectations are not warranted. We do not expect any tangible measures to support its call, although Draghi will obviously mention some of the options… To satisfy those looking for something ‘new’, the ECB president may reflect on the progress regarding the discussion about the introduction of Governing Council meeting minutes”.
EUR/USD levels to watch
At the moment the pair is up 0.06% at 1.3223 with the next hurdle at 1.3255 (high Aug.30) followed by 1.3298 (low Aug.22) and finally 1.3322 (low Aug.27). On the downside, a break below 1.3192 (low Sep.2) would open the door to 1.3173 (low Aug.30) and then 1.3143 (MA200d).