Expect No Fireworks At The ECB Decision
A weakening U.S. dollar has helped both euro and pound sterling to move higher.
Also, BoE rate cut expectations have been pushed back to September as UK inflation remains sticky at 3.5 percent. The GBP/USD rose to a high of 1.3045 and as long as the pair can hold above the crucial 1.30-threshold, the next higher target at 1.3140 could be within reach.
Today, the European Central Bank will decide on its monetary policy but no rate cuts are expected from the ECB this month. Traders thus expect the euro to remain supported against the greenback and brace for higher targets at 1.0960 and 1.0980.
However, traders shouldn’t expect any fireworks today after the ECB has only delivered its first rate cut last month and with ECB President Christine Lagarde saying there will no pre-commitment to a particular rate path. Of course, we will watch out for clues about a next move but we don’t expect too much today.
During summer doldrums we may face quieter trading conditions. Therefore, we will not invest much, trade with smaller positions and don’t trade every day.
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Our trading ideas for today 18/7/24:
EUR/USD
Long @ 1.0965
Short @ 1.0885
Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 40
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
We wish you good trades!
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