It’s all about the ECB and US GDP today. ECB President Christine Lagarde will likely be probed further about her Davos comments where she teased a rate cut in the summer and will US data continue to outshine Europe and the UK?
(AI Video Summary)
In this video about trading, the speaker talks about two important events: the announcement by the European Central Bank (ECB) on interest rates and the release of US fourth-quarter GDP data. They think that the ECB will keep interest rates steady for now, but there could be a rate cut later. Snow mentions that the Eurozone has been struggling economically, while the UK and US have been doing better. This might mean that the ECB will cut rates to help the Eurozone.
The speaker also talks about a few currency pairs. First, they discuss the Eurodollar pair. It has been moving sideways for a while, but there is a chance it could go below a certain level, which would be bad for the Euro. However, if the ECB doesn’t give clear information on rate hikes and talks about wage issues, the Euro might go up temporarily. Then, the speaker talks about the EUR/GBP pair. It has been trading within a certain pattern, but recently it broke a support line and might go down more.
Next, they mention the EUR/JPY, which is showing less positive momentum recently and the yen might get stronger. They also talk about the Dollar yen pair, which might face resistance at certain levels. The speaker moves on to the cable pair, which is the British pound against the US dollar. It has been moving within a range, but if the US data comes out well, it could go down more.
Finally, the speaker discusses the state of US equities, which are doing well, and the positive news about China’s stimulus measures. In conclusion, the speaker believes that the ECB will keep interest rates the same, but there could be rate cuts in the future. They analyze different currency pairs, highlighting possible negative movements for the Eurodollar and EUR/GBP pairs, and note a decrease in positive momentum for the EUR/JPY. They also talk about some resistance and support levels for the Dollar yen and cable pairs. Lastly, they mention that US equities are doing well and China’s stimulus measures are giving out positive vibes.