US Dollar Holds Firm, Euro Bears are Scratching their Nails Ahead of ECB On Monday morning the most of the major currency pairs were trading in sideways following the high volatility trading of the previous week. The Japanese Yen gained somewhat against the US dollar as investors were seeking for a safe place. Everybody now is looking to European Central Bank monetary decision which is due on Thursday at 13:30 GMT. What happened with the SNB on last Thursday is considered by market participants a signal that Draghi will announce a big QE for sovereign bonds. The Euro against the US dollar weighed by Switzerland’s central bank decision, declined to as low as 1.1459 and some of the bearish traders are expecting parity achievement in 2015. The last time we saw the Euro there was on November 2003. What we want to rectify here is that in the market there are already expectations for ECB stimulus announcement and what we have learned until now is that Draghi usually speaks more than doing. Nevertheless, prospects over the Euro-zone are not good, Greece has elections on Sunday and is likely to enter a month of uncertainty with Grexit coming into play. The down way appears very attractive however that is what the most of traders are expecting and that’s why net short on Euro is near its lowest. Based on Forex positioning published by various big FX brokers, traders are highly exposed to the Euro short side. Elsewhere, the Gold is rising as investors look for safer places for their money as well as due to huge monetary stimulus anticipated by ECB. The XAUUSD jumped today as high as 1281.15, that is the highest since September 2014. snfinancials/ DBA Fidelis Capital Markets Forex Trading ECN
Posted on: Tue, 20 Jan 2015 09:33:01 +0000
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