JLS Trade: Short EURCAD, EURNZD and EURAUD

The EURUSD on hold at 1.1100/1.1200 as expected as the baseline to place short on EURCAD, EURNZD and EURAUD to look for 1000 PIPs or more to downward. The balance of 1000 PIPS target zone to downward however will be traded by multiple tranches of their interdays 100-200 PIPs to allow for capital accumulation until those pair to reach their lower ceilings.

Short on EURGBP will be executed after her price fully corrected by EUR and CHF.

Comment:

The European Central Bank held its benchmark refinancing rate at 0 percent on March 7th and pushed out the timing of its first rate hike in nearly eight years to 2020 at the earliest. Also, the central bank announced a new series of quarterly TLTRO to be launched in September 2019, aiming to preserve favourable bank lending conditions and the smooth transmission of monetary policy; and reaffirmed it will keep reinvesting cash from maturing bonds for an extended period of time.

The ECB also cut its GDP growth forecast for 2019 to 1.1 percent from 1.7 percent previously estimated; and that for 2020 was lowered slightly to 1.6 percent from 1.7 percent. The 2021 forecast remains at 1.5 percent.
Meanwhile, policymakers now expect 2019 inflation rate at 1.2 percent (vs 1.8 percent previously estimated). Inflation forecasts for 2020 and 2021 were also revised slightly lower to 1.5 percent (vs 1.6 percent) and 1.6 percent respectively (vs 1.7 percent).