XM.com - Trade Forex with up to 1:500 Leverage and up to $5000 Bonus.
FXRank technical section offers a profound and in-depth text and video Forex and Commodities technical analysis reports done by professional analysts with a great understanding of the market
Advertisement InstaForex

EUR/USD may retest highs amid ECB, US jobs, tariff disputes

Written by James Chen | 2018-03-07 22:14:00 GMT

The European Central Bank’s rate decision, policy statement, and press conference on Thursday could clarify the ECB’s stance on when it may end its longstanding asset purchase program. While no interest rate changes are expected at this time, any hawkish talk of future monetary policy tightening, including the ending of QE stimulus and/or the possibility of rate hikes down the road, should serve as a bullish trigger for the euro. It is likely, however, that the ECB may attempt to limit hawkish verbiage in an attempt to avoid further euro strength.

As for the U.S. jobs report, given that recent equity market turbulence was initially driven in part by higher-than-expected wage growth figures in the last jobs report, this piece of data will take on particular importance. Current consensus expectations for month-over-month average hourly earnings growth in February are running at +0.2%. The unemployment rate is expected to have fallen to an extreme low of 4%, and the headline non-farm payrolls is expected to have risen by around 200,000 jobs, in-line with the previous month. On Wednesday, the ADP employment report showed a better-than-expected 235,000 private sector jobs added to the US economy in February.

From a technical perspective, EUR/USD has risen sharply from the 1.2200 support area since the beginning of March, much of it driven by dollar weakness, and has begun to approach its multi-year highs above 1.2500 once again. The currency pair has continued to rise within a long-term bullish trend and could be poised for an extension of this trend if the dollar continues to be weighed down by trade war concerns and other factors while the euro gets boosted by a potentially more hawkish ECB. In that event, the level to watch continues to be around the mid-February 1.2554 high. Any breakout above that level would confirm a continuation of the long-term bullish trend.

Author

James Chen
InstaForex

Start Trading With Top Industry Brokers

Broker Profile Open Account
XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Leverage applies to all EU regulated entities of the group. Leverage depends on the financial instrument traded.
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC, FCA
  • XM
    Markets
  • Minimum Deposit: 100 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC
  • Markets
    Trade
  • Minimum Deposit: 250 USD
  • Leverage of up to 1:200
  • Broker Type : Market maker
  • Regulation : CySEC
  • Trade

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
    binance
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
    changelly
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
    bitmex
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
    XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Leverage applies to all EU regulated entities of the group. Leverage depends on the financial instrument traded.
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
    eToro
  • Offer: 1000USD Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:400
  • Broker Type : STP
  • Regulation : ASIC, 335692 CFTC/NFA, 0382918 CySEC, 109/10
  • eToro

    Contact us
    fxrank.net@gmail.com