The European Central Bank (ECB) Sets To Ignite Moves In Euro05 March, 2015 by Aayush Jindal in Market Analysis
- Euro nosedived not only against the US dollar recently, but also weakened a lot against the British pound.
- Today, the ECB Interest Rate Decision will be announced by the European Central Bank in which easing measures is likely to cause a lot of action in the Euro pairs.
- BoE Interest Rate Decision will also be announced by the Bank of England in which central bank is expected to make no changes in the interest rates.
- EURGBP pair has a monster resistance around the 0.7270 level which is likely to act as a pivot area.
ECB and BOE Interest Rate Decisions
Later during the London session, there are a couple of important releases lined up as the European Central Bank and Bank of England will be announcing interest rates. No changes in rates is expected by both the banks, but its easing measure from the ECB which might trigger moves in the Euro. Both EURUSD and EURGBP remain at risk of more losses if the Euro sellers gain control.
There is one more release lined up ahead of the rate decision i.e. the Italian Gross Domestic Product will be published by the National Institute of Statistics. The forecast is slated for no change in the GDP in the fourth quarter of 2014, compared to the preceding quarter. However, we consider the yearly change, then the market is expecting it to decline by 0.3%. It would be interesting to see how the outcome affects the Euro in the near term.
The Euro moved towards the 0.7260 resistance area against the British pound recently, which acted as a barrier for the EURGBP pair. There is also a bearish trend line formed on the hourly chart, which is acting as a catalyst for the pair. The most important point is that the highlighted trend line is coinciding with the 100 hour moving average. So, there is a major barrier around the 0.7270-80 area.
On the downside, initial support is around the 0.7240 level where there is a chance that the Euro sellers might struggle in the near term.
US Initial Jobless Claims
Later during the NY session, the US Initial Jobless Claims will be published by the US Department of Labor. The market is expecting it to decline from the last reading of 313 to 295K. Let us see how the outcome unfolds moving ahead.