Forex Signals Brief for Mar 7: ECB Interest Rate Decision in Focus
Most of the focus today will be on ECB and what Mario Draghi and his men have in store for us.
As we expected, the BOC was the most recent Central Bank to take a more neutral stance on interest rates. That comes on the back of the FOMC and the RBA.
There is no expectation of a change in rates at this meeting, However, the rumours that are floating around suggest that the ECB believes the outlook on for the Eurozone is weak enough to potentially open the door to more loans to banks. A move that is not a strong signal for the health of the economy.
We’ll also get a look at Eurozone GDP today and employment. However most of the attention today will be on the ECB Press Conference with Mario Draghi.
Forex Signal Update
The FX Leaders Team closed out only the one signal yesterday in gold, however, there are a number open at the moment.
EUR/CHF – Active Signal
Our EUR/CHF signal continues to cling to the 1.1350 support level, however, I suspect today might be the day for a big move on the back of the ECB. Support has been strong and the trend remains up for now.
AUD/USD – Active Signal
The AUD/USD is being hit with a swarm of poor data and an increasingly dovish RBA. Retail sales missed the mark badly today and that will hopefully help our signal push lower.
Cryptocurrency Update
Bitcoin remains around the $3,800 level as it tries to take back $4,000.
In the last few days, it has been Litecoin (LTC) that has been really bouncing hard and is back pushing into its recent highs for the year. LTC is around 20% higher in recent days on the back of talk that Venezuela is launching a government-backed cryptocurrency remittance program, that will allow users to send bitcoin and litecoin into the country.
Venezuela has been struggling with hyperinflation and this is an interesting use of a cryptocurrency. In effect, it is similar to adopting, say the USD, in a bid to stabilize the economy.
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