EUR/USD: ECB set to keep monetary policy on hold
Consolidatory technical overview set to get shaken by fundamental event.
EUR/USD Technical analysis, overview, strategies, and levels
It's a big day for the euro as the much-awaited ECB (European Central Bank) monetary policy announcement is due later today, whereby the bloc's central bank is set to keep rates unchanged, and its bond purchasing program ongoing. However, of greater importance will be its forward guidance, and whether the recent monetary easing has aided Eurozone economic data in the current economic climate. Its president Lagarde will be holding the usual press conference thereafter, and will also speak tomorrow at Davos preceded by preliminary manufacturing and services PMI (Purchasing Managers Index) figures for the zone and its core. Technicals matter less in the face of such fundamental forces, and hence pivot points are at risk of breaking on a lack of volatility going into the event.
IG client and CoT sentiment for EUR/USD
Retail traders are holding a long bias at 59% dropping slightly as yesterday’s slight gains enticed profit-taking from fresh longs, while institutional bias is an opposite majority short at 56%.
EUR/USD Chart with retail and institutional sentiment
Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin prior to the European market open.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
