- Australia’s MI inflation expectations down from 3.4% to 3.2%
- Nikkei up 0.28% for the day
- ECB to announce quantitative easing program later?
Forex price action seemed to calm down in the aftermath of the BOC surprise interest rate cut announcement, as the lack of top-tier data kept market movements limited. EUR/USD is struggling to hold on to the 1.1600 handle and is down 0.2%, GBP/USD is looking at a 0.11% loss and USD/JPY is up 0.23%.
The only report released was Australia’s MI inflation expectations reading, which fell from 3.4% to 3.2%. AUD/USD is down 0.2% and is holding steady above the .8050 minor psychological support while AUD/JPY is up 0.03% so far.
Volatility could pick up in the upcoming London trading session, as traders prep for the upcoming ECB monetary policy statement at 1:45 pm GMT. Governor Draghi and his men are widely expected to announce the details of their quantitative easing program, although the size of the bond purchases would be more crucial in determining how the euro might react. Make sure you check out my buddy Forex Gump’s ECB statement preview if you’re planning to trade this event!
The British pound could also be in for an interesting trading session, with a few medium-tier reports lined up from the United Kingdom. MPC members Miles and Fisher are set to deliver testimonies and shed more light on the BOE’s monetary policy bias while the public sector net borrowing report and CBI industrial order expectations could also provide some direction for pound pairs.
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