Asian Session Recap & European Open July 20th – Awaiting ECB
Though the Asian session was supposed to be volatile, it wasn't as shaky as expected. I was expecting some serious movement upon the release of the BOJ monetary policy, but it mostly remained mute. Now, I'm anxiously waiting for the ECB to trade the European session.
Asian Session Recap
– Starting from the Japanese Yen, the BOJ kept its benchmark interest rate unchanged at -0.1% since 2016.
– Japanese imports increased by 15.5% from last year's figure. It was expected to be 14.4%. That's why investors increased their bets on Japanese stock markets.
– Australian employment levels expanded in the month of June for the fourth consecutive month. This is what has supported the Australian dollar against the US dollar.
European Session Forecast
– Soon, the ECB will release its Interest Rate Decision which is expected to remain unchanged at 0%. However, any surprise change will cause huge fluctuations.
– At 12:30 (GMT) ECB will conduct a Press Conference. During the open for questions & answer session, we need to watch for clues about tapering.
– I just closed the gold trading signal manually with a minor profit at $1238. The idea is to avoid risk caused by uncertainty.
– The oil trade is still active, staying near the entry point. Let's keep this trade active as the risk to reward ratio is good (1:2).
– The EUR/USD is bearish, but has a strong support $1.1485, below this it can target 1.1465. Above $1.1525, the pair has the potential for $1.1575.
I'm expecting a dovish tone from President Draghi which may depreciate the Euro. If you are wondering how to trade the news, read our Fx Leaders news trading strategy article. Good luck and be careful with your trades!
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