The central event of the day - a meeting of the ECB, which will take place at 14:45 GMT. It is expected that the European Central Bank to start another round of easing monetary policy by lowering interest rates on deposits by 20 basis points, the revaluation of the target long-term refinancing operations (TLTRO), as well as restart the quantitative easing program. According to many experts, the volume of quantitative easing will be € 30 billion. Per month.
Market participants believe that only a package of measures will have a stimulating effect on the economy, and allow to neutralize the effects of the global economic downturn. It is worth noting that at the moment the ECB has sufficient economic opening to shoot "all guns." On the eve of the rating agency Fitch downgraded the growth forecast for the euro area for 2019 to 1.1%. The main reasons for the projected downturn, Fitch's noted the negative impact on the EU economy the world trade of uncertainty because of the ongoing conflict between the US and China, as well as the real threat to "hard» Brexit, which will lead the UK into recession as early as 2020.
An additional argument in favor of the need to mitigate the monetary policy can become today's data on industrial production in the euro area, which is also likely to disappoint. An even greater impact on the European currency will have a press conference the chairman of the ECB, Mario Draghi, scheduled for 15:30 GMT. In case if the regulator will confirm the readiness for further easing of monetary policy, the way down for the euro will be free.
EURUSD SellLimit 1,1050 TP 1,0880 SL 1,1110
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev trader analyst AMarkets. Sotsimalnaya Traders community is not responsible for any losses in the case of the review of materials
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