Asian session trading may have been a snoozer but that doesn’t mean we won’t see volatility during the London session!
Today I’m looking at EUR/USD’s 1-hour time frame.
Before we talk about the setup, though, you should check out the market headlines that you might have missed:
Fresh Market Headlines & Economic Data:
- Chinese markets still out on holiday
- Fed puts restrictions on bank dividends after test finds some banks could be stressed in pandemic
- Tokyo June core CPI rises 0.2% yr/yr
- BOE’s Haldane: UK faces unprecedented labour market inactivity
- BOJ’s Kuroda warns second-round effect of COVID-19 may dent economic growth
- New Zealand consumer confidence bounces but still below normal levels
Upcoming Potential Catalysts on the Economic Calendar:
- Germany’s import prices at 6:00 am GMT
- ECB Governor Lagarde to give a speech at 7:00 am GMT
- BOE’s quarterly bulletin at 11:00 am GMT
- U.S. PCE core price index at 12:30 pm GMT
- U.S. personal spending at 12:30 pm GMT
What to Watch: EUR/USD
China’s markets being out on holiday and a lack of fresh market catalyst kept EUR/USD in a tight range earlier today.
London session’s economic calendar doesn’t look much better with only lower-tier reports on tap.
The biggest potential mover is Lagarde’s speech at 7:00 am GMT. Based on her remarks last week, the ECB head honcho wants EU members to reach a stimulus agreement stat.If she talks about progress on EU stimulus talks, or if she hints at further monetary policy easing by ECB, then we could see EUR/USD find support at 1.1225 and head towards the descending channel resistance on the 1-hour time frame.
If Lagarde’s event turns out to be a snoozer, however, then EUR/USD will take cues from overall risk sentiment.
This means coronavirus or global trade-related headlines could take center stage.