Published on 27.09.2021 10:25

The Euro is trending downwards as we enter today’s European session as investors refrain on placing trades against the EUR/USD currency pair currency pair after the German election outcome and ahead of a speech by the European Central Bank (ECB) Christine Lagarde where she will update the market on the current state of the Eurozone economy.

The race to succeed long-serving Chancellor Angela Merkel has resulted in a fragile parliament with finance minister Olaf Scholz leading the race to take the reins from Merkel. Scholz is seen as a moderate center-left candidate is moderate and the way the results are coming in, we should see a coalition emerge which is Euro positive.

During the American session today the big mover for currency markets will be the release of the US Durable goods figure with analysts expecting a figure of 0.7 percent. This is well up on last month’s figure of -0.1 percent and if analysts are on the mark, the greenback is likely to remain well supported as we head into tomorrow’s Housing price index release from the US.

The EUR/USD currency pair is now entering its 6-day holed up within the trading range between $1.1686 and $1.1743 and is likely to drift down towards the lower band as we approach the release of the durable goods figure later in the day.

The Non-Farm Payrolls release from the US at the end of the week is going to keep traders on edge and may also limit any substantial gains in the Euro as a good figure here will all but guarantee the US Federal reserve will begin tapering before years end.

Andrew Masters

Nhà phân tích tài chính

Thế giới giao dịch không có giới hạn