Wednesday, February 21, 2024

Will today's Eurozone rate hike be enough?

ecb_lagarde_1.jpg

EUR/USD

Support / Resistance: 1.0010 - 1.0125

Today, trading will be entirely influenced by the decision of the European Central Bank on the issue of the main interest rate. Inflation in the Eurozone for the year is between 7 and 20% in individual countries, and interest rates on deposits are at levels of 0.75%.
What is expected today is a rate hike to 1.50%, but investors will be waiting for signals on when and by how much the next hike will be, as 1.50% is too little to fight inflation.
The results of today's ECB meeting are expected at 8:15 AM ET.
Then following a series of important data on the US economy, such as Durable Goods Orders(Sep), Gross Domestic Product Annualized(Q3), Nondefense Capital Goods Orders ex Aircraft(Sep) all at 8:30 AM ET, as well as the ECB Press Conference 8 :45 AM and ECB's President Lagarde speech at 10:15 AM.
Until today's important data, hold long positions. After that, investors may not see clear signals for further rate hikes. This could have a negative outcome for the Euro.

Use our accurate signals for good results.

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