Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

EUR Dips on Release of ECB Minutes

Market Analysis

EURUSD, H1                  

ECB minutes confirm QE debate is open. The minutes of the September 6-7 policy meeting confirmed that officials finally kicked off the open discussion on an adjustment of policy measures as the end of the current QE program comes into focus. Officials discussed “general trade-offs inherent in various scenarios for the future re-calibration of the APP and, in particular the choice between the pace and the intended duration”. This debated the merits of a longer QE extension at lower levels, versus a shorter duration at higher monthly asset purchase levels. Officials clearly are aware and weary of market reaction and investor expectations and the minutes stressed that “any reassessment of the monetary policy stance should proceed in a very gradual and cautious manner, while maintaining sufficient flexibility”, as there was “broad agreement” that substantial support was still needed. Officials also agreed that the currency still needed monitoring. So under debate seems mainly another QE extension, with the main point of debate, the length and the volume. It doesn’t seem as though the ECB is ready to commit to a full tapering schedule with a fixed end date for asset purchases. EURUSD dipped to day lows around 1.1735 and well off earlier highs at 1.1778. 1.1745 is now resistance to a move north, next up a speech by the ECB’s Coeure, Weekly US Jobless numbers and the Trade balance.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Senior Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Risk Disclosure.

Risk Warning: Remember Forex and CFDs are leveraged products and can result in the loss of all invested capital. Please consider our Risk Disclosure.