eToro – Forex Trading Forum

[BlueinGreen]

Hey Traders

yesterday, EURUSD kept trading in a tight range around 1.5500, and this morning it looks like it is going to test 1.5550 again. The reason for the current strength of the EUR (against Dollar and other currencies as well – like EURJPY EURGBP EURAUD ext) is an expected interest rate rise this July by the European Central Bank.

on the opposite side, most traders expect the Federal reserve to hold interest rates steady on 2% in its meeting next week. So this is what basically keeps the EURUSD high relatively to USDJPY as i maintained before.

Notice that the market expect those two events to happen and reacts accordingly right now, if something would change ( say the ECB will not rise rates next month, or the FED will rise rates next week) it will impact gravely on the expectations that were build during the last few weeks of trading, and thus
will impact the market movement in a pretty clear way for us to trade on.



Main events today



9:30am GBP MPC Meeting Minutes

10:00am CHF ZEW Expectations forecast forecast -60.8 previous -60.4

3:35pm USD Crude Oil Inventories

7:30pm GBP BOE Governor King Speaks

traders who trade GBP might have some lead today with the GBP MPC meetimg minutes.

GBP MPC Meeting Minutes= The Bank of England (BOE) Monetary Policy Committee (MPC) Meeting Minutes are a detailed record of the committee's interest rate meeting held about two weeks earlier. The minutes expose the votes cast at the meeting and can give traders further insight into the central bank's stance on monetary policy. Traders carefully comb the minutes for clues regarding future interest rate shifts.

Happy trading