- Euro Main Refinancing Rate and ECB Press Conference
- French/German/Euro Services and Manufacturing PMI
- World Economic Forum Annual Meetings Day 2
Price Movement
Since yesterday, EUR/USD moved up by around 40pips and is gradually coming down.
Trend
EUR/USD is currently on a downtrend.
Macro Background
It is unlikely that the ECB will raise interest rate tonight since they have just ended quantitative easing last month and have yet achieved its inflation goal. However, the ECB did mention possible rate hike in 2019 if the inflation data for the first and second quarter permit.
With that, all eyes are on the ECB Press Conference in hope of getting hints from Mario Draghi on the likelihood of rate hike in 2019.
The Manufacturing PMI measures the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
The Services PMI measures the level of a diffusion index based on surveyed purchasing managers in the services industry.
(Note: PMI of above 50.0 implies industry expansion whereas a figure of below 50.0 implies industry contraction.)
The impact of the various PMI data may be muted due to the upcoming press conference.
Important Issue
Day 2 of the World Economic Forum annual meeting. Comments made by highly influential figures may cause market volatility.
Technical
EUR/USD is currently moving below the 1.14 level.
Price Levels
Current Price: 1.13788
Next Resistance: 1.14138
Next Support: 1.13256