The focus of traders today's ECB meeting. Despite the fact that its results primarily affect the dynamics of the euro currency and European indices, high volatility can be expected all along the broad market. Market participants expect the ECB will confirm readiness to take more decisive action to stimulate the national economy. Given the sharp deterioration in the national macroeconomic environment, it is clear that the Eurozone economy can not cope without new incentives.
Published on the eve of the index of business activity in the manufacturing sector in Germany pointed out that the lead locomotive of the currency bloc's economy has entered a recession. The index value in July subsided to 43.1 points, which is significantly lower than expected and a much lower edge 50 separating sector recovery from recession. No less disappointing figures come on the activity of the manufacturing sector of the Eurozone as a whole. It is worth noting that the European Central Bank is also concerned about the slowdown of the world economy, which puts additional pressure on the European economy.
Having said that, most experts expect that the ECB will signal today to reduce the interest rate in September, as well as leave the possibility for another similar step in December. Another great hopes euro sellers connect with a potential restart of quantitative easing decision on what can be made public at the end of today's meeting. In this scenario, the pair EURUSD risk prosest below 1.11.
EURUSD SellLimit 1,1180 TP 1,1010 SL 1,1240
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author trader analyst Artem Deev company AMarkets.
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