EUR/USD is trading at around 1.1110, below the highs it screamed to yesterday, following optimism on Greece and USD weakness. Are markets afraid of Draghi?
Here is what is moving the markets right now and the video of the live coverage:
1.1190 is the new resistance level: it was touched twice in the last hours. The pair triggered stops when it moved higher on hopes for a deal on Greece, and later on in the wake of the European session.
Update: ECB leaves policy unchanged – all set for the Draghi show
Update 2: Draghi does not really lift forecasts – EUR/USD wobbles and rises
The pair had reasons to continue higher: the final services PMI in the old continent rose from 53.3 to 53.8 points, stronger than expected. In addition, the unemployment rate in the euro-zone dropped from 11.2% to 11.1%, the lowest in a very long time.
Nevertheless, it seems that markets are wary of what Mario Draghi will have to say. The ECB makes its rate decision at 11:45 GMT and no change is expected.
The focus remains on the press conference and the accompanying updated forecasts. This begins at 12:30 GMT. Will the Bank lift its growth and inflation forecasts? Will it hint about an early exit of QE? Or will Draghi remain determined regarding the necessity of the bond buying program?
Join Dale Pinkert and Valeria Bednarik at FXStreet’s Live Analysis Room from 12:00 GMT. I will be joining in afterwards for live coverage. You can watch it all right here:
The chat room for the live coverage is available here.
And here is the chart, showing the double top at 1.1190 and the previous rally.
