
Forex Signals – Euro holds gains as traders brace for ECB meeting
Forex signals – TOKYO (Reuters) – The euro held onto gains against the dollar on Thursday as traders braced for a European Central Bank meeting to gauge policymakers’ views on the common currency’s recent appreciation and its impact on inflation.
FX Signals
Sterling steadied above a six-week low but could face more losses due to growing concern that Britain and the European Union will fail to agree a trade deal.
Forex Signals that work
While markets expect the ECB to keep policy steady, investors will closely watch President Christine Lagarde’s comments on how the euro’s rise to a two-year high this month affects the outlook for inflation and economic growth.
“Most recently, the ECB downplayed inflation, but I want to see how Lagarde will approach this in her press conference. This will determine which way the euro goes.”
The euro (EUR=D3) bought $1.1807 in Asia on Thursday, holding onto a 0.3% gain from the previous session.
The British pound traded at $1.3307, recovering slightly from a dip to a six-week low of $1.2839 on Wednesday.
The pound (EURGBP=D3) also pulled back from a six-week low against the euro to trade at 90.79 pence.
Sentiment for cable has taken a hit after Britain unveiled draft legislation that analysts say raises the possibility of it exiting the EU single market in four months time with no trade agreement in place.
Dollar bides time ahead of ECB
The dollar held steady against the safe-harbour Swiss franc at 0.9120 and was little changed at 106.20 yen.
Forex Signals – Dollar Holds Near Session Highs
The ECB’s views are also in the spotlight after euro-zone consumer prices turned negative in August for the first time since 2016, and the U.S. Federal Reserve switched to focusing on average inflation.
EUR/USD Weakens After ECB Stimulus Fails
Traders in the dollar are closely watching global equities to see if a rebound in U.S. tech shares from a rapid sell-off will support riskier assets in other markets.
The dollar index (=USD) against a basket of six major currencies slipped 0.3% to 93.261.
Dollar Weakens Ahead of Sterling
Elsewhere, the Australian dollar edged slightly lower to $0.7275 as investors nervously monitor an outbreak of coronavirus infections in the state of Victoria.
Dollar Down With Investors Looking to Thursday’s ECB Meeting
Across the Tasman Sea, the New Zealand dollar was little changed at $0.6680.
Forex Signals – Euro holds gains as traders brace for ECB meeting
Join our 21,345 Subscribers Forex Signal Packages!!
About The Author: Forex Signals
Telegram Forex Signals FX including Opening Forex Accounts. Subscribe now for major pairs Forex Trading Signals Today by FxPremiere Telegram Forex Signals FX
More posts by Forex Signals