eToro – Forex Trading Forum

[BlueinGreen]

hello traders,

The Fed kept interest rates steady at 2.0 percent on Wednesday as expected. Investors were disappointed that only Dallas Fed President Richard Fisher voted against the decision as markets had expected Philadelphia Fed President Charles Plosser to vote against it as well following his recently hawkish comments.

I think the bottom line result of this meeting was: lower expectations for future raise in interest rates this year.

Still on the filled the dollar is gaining this morning against the Yen, this is due to the continuing drop in oil price – the oil price has long became an important variable we have to take into account in our trading.

EURUSD has rebounded back to 1.55 area from 1.5446 – a fresh low of 8 weeks.
The inflation in Europe is twice as fast as the European Central bank has expected, leading some traders to believe the ECB on its meeting this Thursday will signal further rate raise in the future – in this case the bullish move of the dollar against the EUR would come in to a halt, possible resulting in a move back above 1.56.

events today,

11:00am EUR German Factory Orders m/m Forecast: 0.4% Previous -0.9%

3:00pm CAD Ivey PMI Forecast 62.0 Previous 69.6

11:45pm NZD Employment Change q/q Forecast 0.1% Previous -1.3%

11:45pm NZD Unemployment Rate Forecast 3.8% Previous 3.6%


Ivey PMI = The Ivey Purchasing Manager's Index (PMI) measures the activity level of purchasing managers from all sectors of the economy, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency

Happy trading