Awaiting Decisions
Awaiting Decisions
The ECB and BoE today are both scheduled to meet as this keeps markets on hold as the dollar remains mixed while crude oil prices continue to incline adding more pressure to economies as they already suffer from inflation as there is a current global slowdown.
The single currency is continuing to lose grounds versus the US dollar which so far has been eight-week low as there are anticipations that the ECB will start to worry about the slowdown of the EU growth. In addition to that, the seen yeild spread among the two-year German notes and Treasuries decreased as investors thought that the current state of the economy will cause the ECB to cut interest rates later this year. Today the ECB will meet in which it is projected to keep interest rates steady at 4%. The EUR/USD is currently trading at 1.5341 while recording a high of 1.5360 and a low of 1.5284.
The sterling was seen in a neutral trend this morning as it couldn’t break the resistance level of 1.9600 as it started falling as investors also wait around for the BoE rate decision later this afternoon in which is it expected that they will also keep rate decisions unchanged at 5%. The GBP/USD pair is currently trading 1.9571 while recording a high of 1.9613 and a low of 1.9504.
The yen is gaining on the back of investors getting rid of riskier assets. The USD/JPY pair rebounded from the strong support at 103.65 targeting the next minor resistance at 104.40s as they trade at 104.09 while recording a high of 104.92 and a low of 103.66.
Crown Forex
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