Yesterday, we saw some of the biggest moves in forex markets that we’ve had in a while. The EUR got absolutely hammered, while the USD continues to outperform.
Markets were less than impressed with ECB President Mario Draghi and his dovish press conference. While we finally got some details on when the ECB will wind up their bond buying, Draghi still left the door open for it to continue. At the same time, he made it clear that there wouldn’t be any interest rate hikes any time soon.
Conversely, the USD had a great session. We saw more signs of a strong economy in the US and retail sales came in well above expectation.
Today we get a look at Eurozone CPI. For the most part, Europe has been improving. Inflation is creeping higher and towards the target 2% yearly rate. However, if we get a weak result today, the EUR/USD might be in for a wild ride.
Forex Signal Update
It was a tricky day on forex markets yesterday as the unexpected news pushed the technicals to the side. The FX Leaders Team found the one win in what was a tough day at the office. We are still 11 and 9 for the week, which is good news though.
Bitcoin – BTC continues to decline along with the entire crypto space. Shain has some good insights here.
EUR/GBP – After the EUR took a big hit we fell away sharply and we are clearly on the slide.
CAC – Pending Signal
While US stocks had a mixed day yesterday, the CAC put in a decent performance. We are pushing towards resistance and if we get a bit of a nudge higher, we might be in for a move towards the most recent swing highs.