{"id":147277,"date":"2019-05-08T09:32:54","date_gmt":"2019-05-08T13:32:54","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=147277"},"modified":"2019-05-08T09:32:54","modified_gmt":"2019-05-08T13:32:54","slug":"eur-down-ahead-of-ecbs-draghi-due-to-speak-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/eur-down-ahead-of-ecbs-draghi-due-to-speak-today\/","title":{"rendered":"EUR Down Ahead Of ECB\u2019s Draghi, Due To Speak Today"},"content":{"rendered":"
May 8, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

USD Keeping Quiet<\/strong><\/h2>\n

Its been a stagnant week so far for the US dollar. The index is continuing to tread water<\/strong>\u00a0in the middle of the 97.10\u201397.68 range. A lack of key US data has seen focus shift elsewhere with little on the slate for today\u2019s US session. The only release is a speech from Fed\u2019s Brainard which is unlikely to be market moving.<\/p>\n

Draghi on Watch<\/strong><\/h2>\n

EURUSD remains hemmed in against the broken 1.1217 level which has capped upside advances of the last week of trading days. EUR remains weighed down by concerns over the health of the Eurozone economy.\u00a0ECB\u2019s Draghi is due to speak today.\u00a0<\/strong>Markets will be watching his comments closely ahead of the upcoming ECB meeting in June. Traders will be especially keen to gauge the likelihood of a rate hike this year. Any mention of rate hikes being pushed out to next year will likely be very bearish for EUR.<\/p>\n

Pound Getting Pummelled<\/strong><\/h2>\n

GBPUSD has extended this week\u2019s decline over the European morning today with rate pushing to 1.3022<\/strong>\u00a0last. Political uncertainty in the UK, as well as the BOE remaining on hold for the foreseeable future, has done little to inspire confidence in GBP bulls. Friday\u2019s rally is now seeming like a knee jerk reaction rather than the start of a move.<\/p>\n

Risk Aversion Growing<\/strong><\/h2>\n

It\u2019s also been a\u00a0subdued week for risk markets<\/strong>\u00a0given the double whammy from President Trump.\u00a0The US leader announced that the current 10% levies on $200 billion of Chinese goods will rise to 25% as of Friday.<\/strong>\u00a0By Trump doing this, the trade was has been\u00a0reignited.\u00a0Warships have also been sent to the Middle East in an escalation of tensions between the US and Iran.<\/strong>\u00a0SPX500 is now testing the 2872.76 level again following briefly piercing below the level yesterday.<\/p>\n

Safe Havens Soaring<\/strong><\/h2>\n

The risk-averse tone which has bloomed over the week has allowed for better trading in the safe havens.\u00a0Both Gold and the Japanese yen are trading higher against the US dollar.<\/strong>\u00a0USDJPY has continued its decline this week following the gap lower at the week\u2019s open. The rate is trading at 110.01 last as the JPY rallies hard on safe haven inflows. Gold prices have been similarly buoyant with XAUDUSD breaking back above the 1280.58 level to challenge last week\u2019s highs at 1288.<\/p>

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Crude Capped<\/strong><\/h2>\n

Crude oil has been back under pressure again today with price trading 61.18 last, though still above the 60.47 support for now.<\/strong>\u00a0The market of currently caught between opposing themes of potential demand disruption from an escalation in the US\/China trade war and potential supply disruption from\u00a0rising Middle East tensions<\/a>.\u00a0Looking ahead today, traders wait for the weekly EIA report following<\/strong>\u00a0yesterday\u2019s API report which indicated a third consecutive weekly build in US crude stocks.<\/p>\n

Commodity Currencies Weaker in Risk-Off Environment<\/strong><\/h2>\n

A neutral USD has kept the\u00a0focus on oil prices for CAD traders leading USDCAD mildly higher<\/strong>\u00a0over the day so far to trade 1.3480 last. Pressure remains tilted to the upside with price continuing to push against the 1.3460\u20131.35 resistance area. A further bearish report from the EIA could be enough to fuel a run above the level later today. However, it will depend on the moves we see in crude.<\/p>\n

Following a rally yesterday in response to the\u00a0RBA keeping rates on hold<\/a>, despite growing expectations of a cut,\u00a0AUDUSD was back down again today<\/strong>\u00a0with the .7021 level acting as resistance to an early bullish move seen in response to the RBNZ rate cut.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex USD Keeping Quiet Its been a stagnant week so far for the US dollar. The index is continuing to tread water\u00a0in the middle of the 97.10\u201397.68 range. A lack of key US data has seen focus shift elsewhere with little on the slate for today\u2019s US session. The only release is a speech […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-147277","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=147277"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147277\/revisions"}],"predecessor-version":[{"id":147279,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147277\/revisions\/147279"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=147277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=147277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=147277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}