ECB in Focus as trade tensions ease

 EURUSD, H1 & H4

European Commission President Juncker and US President Trump agreed to suspend new tariffs during the negotiations which aim to lower barriers to transatlantic trade, which rekindled hopes that an escalation of trade tensions can be avoided. Both sides will “hold off on other tariffs”, which while talks proceeds, so car tariffs are being put on the back burner for now at least. The EU pledged to buy more soybean and import more natural gas from the US and Juncker said the deal may lead to a reassessment of metal tariffs “in due course” with both sides agreeing that if there is sufficient progress this can be done “from one day to another”. US stock markets staged a late rally, but as China’s example shows the apparent truce may be short lived. Back in May a framework for trade negotiations was dropped within days of it being announced.

Today’s highlight is the ECB meeting where the Bank is expected to confirm the policy outlook that was announced at the June meeting. That is to cut back net asset purchases to EUR 15 bln in October, and to phase out QE in December. EURUSD broke back over 1.1700 last night and holds  1.1735 with resistance at the key 1.1750 zone.

The Crossing EMA Strategy both style 1 and 2 triggered on the H1 and H4 time-frames yesterday.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Head Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.