Wednesday 20 July 2016

EUR/USD is flirting with 1.1000 in anticipation of the ECB meeting

EUR/USD has calmed down after the Brexit in anticipation of the meeting of the European Central Bank, scheduled for Thursday. In the background, waiting for the Fed's rate raising slowly climbing up, providing support for the dollar across the board.
EUR/USD is floating around the key level of 1.1000 before tomorrow's meeting of the Governing Board of the European Central Bank, which is unlikely to be able to support the euro; Meanwhile, the pound this morning, managed to overcome the important level of 1.3100.
The IMF warned on Tuesday that Brexit will lead to a slowdown in global economic growth of 0.1%, as well as greatly increase the economic and political uncertainty.
Yesterday an informal "voice" of the Federal Reserve, the author of articles in the Wall Street Journal, John Hilsenrath noted, that the Fed did not approve how low the market value the probability of a rate hike at the next meetings of the Federal Open Market Committee.
 The graph for EUR/USD continues to reflect the uncertainty, but I believe more probable movement will be due south, as the pair is now testing the key 1.1000 area. At a meeting of the monetary policy on Thursday, the ECB Governing Council is unlikely to report anything that can support the currency.


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