Monday March 7, 2016 - 18:33:38 GMT
Share This Story
Global-View.com - www.global-view.com
Forex - What is Holding Up the EURUSD?
The following is a post from one of the highly respected members of the Global-View Forex Forum explaining why the EURUSD is at 1.10 and not heading lower ahead of the ECB meeting. The explanation can be summarized as follows:
1) Those with short EURUSD positionsare buying options (i.e. calls) to protect against a move to the upside. This creates demand for EURUSD
2) Many got burnt betting on Draghi aggressively easing although this time expectations for the March 10 ECB meeting have been scaled back
3) The BoJ surprise cut in interest rates to negative did not have the desired effect as the USDJOY fell sharply after an initial move up.
4) Those ECB members who are against further easing may argue that the rebound in oil and commodity prices will lead to higher headline inflation down the road.
From the Global-View Forex Forum
london red 17:51 GMT 03/07/2016
euro rally down to folk taking topside protection which is reflected by buying by those at risk on any such upside move. last time many got burnt and altho it will make draghi even more determined to bust thru all expectations, folk will point to the boj and their so far failed experiment with increasing rates further to negative and also the fact the oil is up20% plus with other commos rallying, ecb members against further action will now be able to point to inflation heading up some 3-6 months down the line, so will argue better to wait.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."