Gtag:

Euro Enjoys Roller Coaster Movement Ahead of ECB’s Interest Rate Decision; 40+ PIP Volatility Likely; April 22, 2021

Euro ECB Main Refinancing Rate Decision

Today the key event for the day will be ECB’s Interest Rate Decision scheduled at 1145 GMT/1715 IST followed by ECB’s Press Conference at 1230 GMT/1800 IST. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. The 6 members of the ECB Executive Board and 15 of the 19 governors of the Euro area central banks vote on where to set the rate, via rotation. The split of votes is not publicly revealed.

In addition, Monetary Policy Statement is the primary tool the ECB uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.

Lastly, ECB’s Press Conference will release and is about an hour long. It has 2 parts – first a prepared statement is read, then the conference is open to press questions. The questions often lead to unscripted answers that create heavy market volatility.

In today’s meet, either ECB may clarify their forward guidance or stands pat till the time Euro Zone controls the third virus wave. Currently in EU, J&J’s vaccines are rolling out and soon EU’s economy will come back on track. If ECB keeps the hawkish tone regarding economy recovery, Euro could jump above $1.2150 otherwise if ECB keeps adding stimulus to economy, Euro might get depreciated to $1.1940 mark.

Let’s see how EURO has reacted during the previous data release:

March 11:

Jan 21:

Technical View:

EUR/USD: The euro depreciates sharply ahead of ECB’s Interest Rate Decision and Press Conference. The pair made intraday high at $1.2049 and low at $1.2024. Today triple EMA on a day chart and H1 chart suggests bullish trend for the time being. A consistent close above $1.2050 on H1 chart requires for the upside rally. Alternatively, a sustained close below $1.2006 on H1 will check further supports.

Key Resistances: $1.2050, $1.2090, $1.2128, $1.2152, $1.2180

Key Supports: $1.2006, $1.1980, $1.1942, $1.1920, $1.1876

Take a look and do trade wisely!
Good Luck

Tags
Share on facebook
Share on linkedin
Share on twitter
Share on telegram
Share on whatsapp
Unleash Powerful Trading Conditions with TP Global.

Recent Posts

Categories

Offices

305 Griffith Corporate Park, Beachmont Kingston, Saint Vincent & the Grenadines

Mail us

Drop mail at:
support@tpglobalfx.com

Contact us

Call or Whatsapp
+44 7441 416320

Risk Warning: Forex and Contracts for Difference (CFDs) are leveraged products. Trading in these products is highly speculative and involves substantial risk. Please note that even knowledgeable and well-experienced investors can experience large potential losses as a result of trading in Forex and CFDs. Consequently, investors should be fully aware of all the risks involved when trading Forex and CFDs and accept all the negative consequences associated with such trading. Please always remember that trading in Forex and CFDs might not be suitable for all investors. It is desirable investors who would consider trading, to do so only with money that they can afford to lose. You are also recommended to seek independent financial advice if necessary. The content on this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Apple, the Apple logo, iPod, iPad, iPod touch, and iTunes are trademarks of Apple Inc, registered in the US and other countries. iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc. This site is run and operated by - TP Global Services Limited registered by St. Vincent and the Grenadines with Number 25274 BC 2019. Registered office: Suite 305, Griffith Corporate Centre, Beachmont, P.O.Box 1510, Kingstown Saint Vincent and the Grenadines

TP Global Fx Africa Limited is incorporated in Federal Republic of Nigeria under the Companies and Allied matters Act 1990 with registration number RC 1674202. The objects of the company are all subject matters not forbidden by Companies and Allied Matters Act 1990. To provide Electronic Platform through which clients can choose currencies, commodities, indexes, CFDs and other leveraged financial instruments to trade.

TP Global Services Limited is registered with NFA (National Futures Association) USA with Registration Number 0533098.

mappin at-sign phone close