ECB likely to show concern with the tightening in financial conditions

wrapper

News
Analysis
- Fundamental
  
  Daily fundamental analysis
  
  Weekly fundamental analysis
- Technical
  
  Daily technical analysis
  
  Weekly technical analysis
Charts
Basic terms
Education
Calendar
Contact

Monday, Jan 18 2016

The ECB January meeting and press conference (Thursday) are the most important events for the EUR this week, and while policy settings are widely expected to remain unchanged, dovish rhetoric should place downward pressure on the currency. In the statement and press conference, the ECB is likely to show concern with the tightening in financial conditions that has occurred since its December meeting, including 5% EUR NEER appreciation.

This dovish message is likely to be reiterated by President Draghi and Executive Board Member Cœuré when they speak at the World Economic Forum in Davos, Switzerland on Friday. With EA core inflation and market measures of inflation expectations remaining extremely low, we continue to think longer or greater policy accommodation is likely, which should weigh heavily on the EUR.

Euro is currently being traded around 1.09 area. Pair is likely to find support around 1.0850 handle and resistance above 1.0970 level. There will be no major data releases in the rest of the session.

More in this category: « New Motor Vehicle Sales decreased by 0.5% Oil under further pressure with sanctions on Iran lifted »

Latest from Editor

Popular

UK still likely to leave the EU with a negotiated agreement, says Number 10
A successful deal with the European Union remains the “most…
Sentix Investors Confidence rose to 14.7 in August
The summer heat in Europe is also causing economic temperatures…
German factory orders -4.0% seasonally adjusted on the previous month
Based on provisional data, the Federal Statistical Office (Destatis) reports…
China's July exports growth still seen holding up despite U.S. tariffs: Reuters poll
China's exports are expected to have maintained solid growth in…

About Us

Forex Web News is part of Rolling Capital Network providing financial consulting.

Within the Forex Web News we provide our readers with expert and timely technical analyses, fundamental analyses and news; with one aim – for our readers to make best possible financial decisions.

Forex Web News desks and analysis department follow the international markets closely and create high quality proprietary content on a both daily and weekly basis.

.

All our analysts have several years of trading and analysis experience. The Forex Web News analysis team creates daily and weekly analyses and offer forecasts regarding where they believe the markets are heading. Our readers are provided with data displayed both in texts and on graphs, providing them the fullest understanding of what is happening in the market place.

We are constantly growing our news desks and our analysis departments as we strive to broaden the content we provide to visitors of the Forex Web News.

Menu

Disclaimer

Rolling-capital.com – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. rolling-capital.com bears no responsibility for any trading losses you might incur as a result of using any data within the Forex Web News.