The G10 currencies trading mixed Thursday in Asia morning against the dollar index, besides the USD is marginally higher 0.05% at the time of writing.
FOMC March 19-20 meeting Minutes highlighted that “The market-implied path for the federal funds rate in 2019 declined slightly over the period, while investors continued to expect no change to the target range for the federal funds rate at the March FOMC meeting. The market‑implied path of the federal funds rate for 2020 and 2021 shifted down a little.”.
The dollar index (KTM: USDX) managed to hold the 50MA on Tuesday and Wednesday, and currently trading tad above at 96.50. Its 100MA finds at 96.30 below here 96.15 exists its 100EA. The daily RSI is propelling down, and the oscillator is remaining bearish.
Besides in the April ECB meeting, the Governing Council kept the benchmark rates and forward guidance unchanged.
In the press conference, Draghi high lightened “Incoming data continue to be weak, especially for the manufacturing sector, mainly on account of the slowdown in external demand.”
He also repeated “The risks surrounding the euro area growth outlook remain tilted to the downside, on account of the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets.”.
EUR reaction to the meeting: The major EURUSD swiftly fell 50 points from 1.1288 to 1.1229 overnight and recovered to 1.1275 by the end of the day. Intraday resistance seems to be between 1.1290-1.1300 its 50MA above this 1.1330 exists. The flip side support finds at 1.1250, 1.1230 and 1.1190. The setting is positive for intraday but only above 1.1290/1.1300.
Data to watch today:
Lack of high impact data risk traders focuses on several FOMC members speeches.
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