EUR/USD eyes 50-H MA
The start of the trading week has been understandably calm due to the US bank holiday. GBP/USD has not traded too far away from $1.16 since Friday, and is currently awaiting stimulus from Thursday’s big announcement. Once again the behavior of this currency cross will be greatly affected by the tone and content of Mario Draghi’s speech on Thursday. EUR/USD is likely to get more nervous and jittery the closer we get to 1.30pm on Thursday (London time).
Whatever is announced by the European Central Bank will only be the first major stimulus to EUR/USD as we are also expecting to hear the results of the Greek general election next week. Judging by the comments coming from European finance ministers over the last week there is a worry that change will be voted in.
Current levels for EUR/USD of $1.1582 are intertwined with the 50-hour moving average but this relationship could quickly be tested with German ZEW sentiment figures out at 10am (London time).