EUR/USD made a half-hearted attempt to move higher, but within the first hour of trading on Thursday those gains have already been wiped out. Having broken below the 50 day moving average (DMA) last week it now looks set to chase down both the 100 and 200 DMAs.
Currency traders will still have plenty to digest today, with both the Bank of England’s Mark Carney and the European Central Bank’s Mario Draghi addressing the public with their latest thoughts about interest rates. Both have made it clear that their long-term strategy is for stable none-changing rates unless some ambitious targets have been met.
The markets, on the other hand, are factoring in possible changes earlier, after digesting the improving sovereign debt markets, economic data and improving consumer and business confidence. Today traders will be listening closely to see if there is any wiggle room from the central banks as to timelines, and whether there will be any desire to move towards market expectations.