Euro Bulls Know Which Level to Defend on a Dovish ECB Outcome
- Central bank meeting may put currency’s resilience to test
- German SPD meeting; BOJ meeting; Brexit bill in House of Lords
ECB Signals Shift in in QE Policy
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The foreign-exchange market has come to price in a high chance that Mario Draghi will next week repeat concerns voiced in September over the euro’s appreciation. Should that prove correct, the capitulation point for long positions in the shared currency seems well defined.
The euro consolidated this week after verbal intervention by policy makers over its recent strength. Following, or even prior to, the European Central Bank meeting on Jan. 25, a daily close in the euro-dollar pair below the January breakout point near $1.2090 would put the common currency’s latest appreciating trend to the test.