[EURUSD] Short-term - Post Draghi, waiting for new data.
EUR/USD is trading around 1.1280, consolidating after dropping on the dovish ECB decision on Thursday and the Federal Reserve’s decision in March to cease raising interest rates. This year was driven by unease over the U.S. and global economies and surprisingly subdued inflation, according to minutes of the pivotal central bank meeting.
1.Fundamental analysis.
Last month, the Fed aborted previous plans to keep raising a key short-term U.S. interest. Instead, Chairman Jerome Powell reiterated that the Fed would remain “patient,” with the central bank’s closely watched “dot plot” pointing to no increase in interest rates for 2019. The Federal Reserve chairs from around the nation agreed that the possible slowdown of the US economy influenced the Fed’s decision not to raise interest rates.
On the Fed’s list of worries: Sluggish U.S. growth early in the new year, a weaker global economy, the messy attempt by the U.K. to leave the European Union and festering trade tensions between the Trump administration and China.
“A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year,” the minutes said.
What the Fed wasn’t worried about was rising inflation.
‘It was noteworthy that had not shown greater signs of firming in response to strong labor market conditions and rising nominal wage growth, as well as to the short-term upward pressure on prices arising from tariff increases,’ noted the minutes.
2. Technical analysis
This week ends with the pair consolidates after FOMC minutes as no major change in interest rate had been made, the price is currently at 1.126 level, which is the previous support level. Although the current price could potentially be a tough barrier to break through, it is worth noting that the price is still in its lowest level since June 2017 and the chance of its breaking through this level and reaching 1.14 is high.
Conclusion:
Wait for the right entry as our stand in this one is Long.
We wish you success in trading. If you like our content, feel free to like and follow. See you at the next Overall analysis.
1.Fundamental analysis.
Last month, the Fed aborted previous plans to keep raising a key short-term U.S. interest. Instead, Chairman Jerome Powell reiterated that the Fed would remain “patient,” with the central bank’s closely watched “dot plot” pointing to no increase in interest rates for 2019. The Federal Reserve chairs from around the nation agreed that the possible slowdown of the US economy influenced the Fed’s decision not to raise interest rates.
On the Fed’s list of worries: Sluggish U.S. growth early in the new year, a weaker global economy, the messy attempt by the U.K. to leave the European Union and festering trade tensions between the Trump administration and China.
“A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year,” the minutes said.
What the Fed wasn’t worried about was rising inflation.
‘It was noteworthy that had not shown greater signs of firming in response to strong labor market conditions and rising nominal wage growth, as well as to the short-term upward pressure on prices arising from tariff increases,’ noted the minutes.
2. Technical analysis
This week ends with the pair consolidates after FOMC minutes as no major change in interest rate had been made, the price is currently at 1.126 level, which is the previous support level. Although the current price could potentially be a tough barrier to break through, it is worth noting that the price is still in its lowest level since June 2017 and the chance of its breaking through this level and reaching 1.14 is high.
Conclusion:
Wait for the right entry as our stand in this one is Long.
We wish you success in trading. If you like our content, feel free to like and follow. See you at the next Overall analysis.
