The Euro will continue to move after the arrivals of Mario Draghi and Donald trump
The Euro/dollar is in the balance, awaiting the speech
Wednesday, March 7, trades on the Euro/dollar ended in positive territory. The Euro updated intraday high at 1,2448 in the European trading, at least 1,2385 – in the U.S. session. By the close of the day the price recovered to 1,2411.
The U.S. currency strengthened against the Euro from 1,2448 amid partial profit taking and the release of favourable data on the US labor market.
Data from Automatic Data Processing (ADP) showed that U.S. private sector in February was created 235 thousand new jobs compared to 234 thousand in the previous month (consensus: 195 million). They are important to report before tomorrow’s Non-Farm.
Planned stats (GMT +3):
At 09:45 Switzerland reported the change in unemployment for February.
10:00 Germany announced a change in the volume of factory orders in January.
At 15:45, the ECB will publish the interest rate decision.
At 16:15 Canada will report on changes in the number of housing starts for February.
At 16:30 there will be a press conference of the ECB. Canada will release the price index for new housing in January and said about the change in the volume of issued building permits for January. The U.S. will report on changes in the number of initial claims for unemployment benefits.
Waiting on yesterday’s movement was completely justified. First worked for the high forecast, then at least to the end of the day and returned to the level 1,2411.
At the time of writing the Euro is worth 1,2407. The price is trading close to the carrying line LB. Due to the upcoming press conference M. Dragi review no forecast. Dredge with parasol unpredictable, so technical analysis is still working for them.
If you start from daily TF, the stochastic oscillator appeared bearish signs. But again, Draghi does not look at technical indicators. It can drive the price at any price level, regardless of generated pricing models. On the day of the press conference and Non-Farm Payrolls, I prefer to stay out of the market.
Today must be the President of the United States trump regarding trade tariffs on steel and aluminum.