Euro Grinds Higher
The euro edged higher on Thursday as traders braced for a European Central Bank meeting to gauge policymakers’ views on the common currency’s recent appreciation and its impact on inflation.
Sterling steadied above a six-week low but could lose more ground due to growing concern that Britain and the European Union will fail to agree a trade deal. The ECB is this week’s biggest event by far and there is a lot at stake.
While markets expect the ECB to keep policy steady, investors will closely watch President Christine Lagarde’s comments on how the euro’s rise to a two-year high this month affects the outlook for inflation and economic growth.
The euro bought $1.1821, holding onto a 0.3% gain from the previous session. The British pound traded at $1.2993, recovering slightly from a dip to a six-week low of $1.2839 on Wednesday. The pound fell to 90.98 pence per euro, approaching a six-week low.
The dollar held steady against the safe-harbor Swiss franc at 0.9116 and was little changed at 106.11 yen. The ECB’s views are also in the spotlight after euro-zone consumer prices turned negative in August for the first time since 2016, and the U.S. Federal Reserve switched to focusing on average inflation.
On the technical front the EURNOK, the RSI is at 57.88% and suggests that the market can move in the upward direction. The current price of EURNOK is trading above 5, 20 and 50 days moving averages. The stochastic is forming a upside crossover.
Overall Bias is positive and Short-term buy trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion – Buy EURNOK At 10.65980 Take Profit At 10.79175 Stop Loss At 10.79175