{"id":8348,"date":"2010-04-08T07:29:44","date_gmt":"2010-04-08T11:29:44","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8348"},"modified":"2010-04-08T07:29:44","modified_gmt":"2010-04-08T11:29:44","slug":"boe-and-ecb-rate-decision","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/08\/boe-and-ecb-rate-decision\/","title":{"rendered":"BoE and ECB rate decision"},"content":{"rendered":"<p><strong>eToro News<\/strong><\/p>\n<p><strong><a href=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/1.gif\"><img loading=\"lazy\" decoding=\"async\" title=\"1\" src=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/1.gif\" alt=\"1\" width=\"333\" height=\"222\" \/><\/a><\/strong><\/p>\n<p><strong>The ECB Rate Decision-<\/strong>The ECB is expected to leave  rates unchanged at a record low of 1% amid weak economic conditions  while outlaying inflationary risks as remote. The ECB will be keen to  indicate current rates are appropriate especially with the Greek debt  woes still echoing at the background. Overall investors expect the first  rate hike by the ECB at the beginning of 2011 and any rate hike of the  ECB before that time horizon due to elevated inflation rather than  growth could have a negative spine off.<\/p>\n<p><strong> <\/strong><\/p>\n<p><strong>The BoE Rate Decision will be at the centre-<\/strong>The BoE  is expected to leave rates unchanged at 0.5% with consensus polls  pointing on an expected rate hike by the end of 2010.Investors will be  alert to the BoE remarks on two major subjects QE and economic growth.  QE an emergency measure which involves capping bond yields and printing  money simultaneously is used to stimulate credit in a weak economy. If  the BoE will mention future QE this literally mean the BoE sees more  future economic weakness and will be ready to print more money. This  will be of course Pound bearish. In addition if the BoE will outlay a  rather subdued economic growth story even without mentioning QE then  investors\u2019 consensus on the BoE rate hike could shift from the end of  2010 to 2011 which is also rather bearish for the Sterling Bearish.  However if the BoE will suggest carful optimism this could confirm  investors bets on a better than expected UK recovery and will move  investors to crowd on more Sterling bets. This will probably affect the  most on EUR\/GBP which could fall further.<\/p>\n<p><strong>Technical Update<\/strong><\/p>\n<p><strong>EUR.GBP, Daily<\/strong><\/p>\n<p><a href=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/2.gif\"><img loading=\"lazy\" decoding=\"async\" title=\"2\" src=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/2.gif\" alt=\"2\" width=\"466\" height=\"239\" \/><\/a><\/p>\n<p>The Pair is reaching the 0.875 support after a rather sharp bearish  selloff. The pair\u2019s journey south still looks in place. We suggest  waiting for a slight bounce to the <strong>0.887-0.89 <\/strong>zone  before riding this bearish cycle.<\/p>\n<p><strong>Technical  Opportunities<\/strong><\/p>\n<p><strong>GBP.USD, Daily<\/strong><\/p>\n<p><a href=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/3.gif\"><img loading=\"lazy\" decoding=\"async\" title=\"3\" src=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/3.gif\" alt=\"3\" width=\"467\" height=\"239\" \/><\/a><\/p>\n<p><strong>General Overview-<\/strong> The Pair is currently trading  sideways and it is unclear to which direction the pair will eventually  break. \u00a0Nevertheless we currently see a good risk reward bearish trade  using this range.<\/p>\n<p><strong>Trading Advice-<\/strong> Place your stop loss above the upper  range at 1.54 and ride a bearish cycle to 1.49.<\/p>\n<p><a href=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/4.gif\"><img loading=\"lazy\" decoding=\"async\" title=\"4\" src=\"http:\/\/www.etoro.net\/wp-content\/uploads\/2010\/04\/4.gif\" alt=\"4\" width=\"113\" height=\"63\" \/><\/a><\/p>\n<p><strong>Daily Forex Market Analysis provided by<a href=\"http:\/\/www.etoro.com\/A15748_TClick.aspx\" target=\"_blank\"> eToro<\/a><\/strong><\/p>\n<p>Disclaimer: Trading in the Foreign Exchange market might carry       potential rewards, but also potential risks. You must be aware of the       risks and are willing to accept them in order to trade in the foreign       exchange market. Don\u2019t trade with money you can\u2019t afford to lose.<\/p>\n<p><strong><a href=\"http:\/\/www.etoro.com\/A15748_TClick.aspx\" target=\"_blank\">\u00a9 2009 eToro Blog.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By eToro News &#8211; The ECB Rate Decision-The ECB is expected to leave rates unchanged at a record low of 1% amid weak economic conditions while outlaying inflationary risks as remote. The ECB will be keen to indicate current rates&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8348","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=8348"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8348\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}