Euro Zone Data Clarifies ECB Rate Decision

The June Euro is expected to open higher because of a better than forecast Index of European Services and Manufacturing Report. This news is triggering a strong short-covering rally because it is sending a signal that the European Central Bank will likely hold interest rates at 1.0% at its next meeting on May 7.

The recent weakness in the Euro has been triggered by uncertainty regarding whether interest rates would fall below the 1.0% level. Today’s news seems to clarify things.

The Euro is trading higher because of a better than forecast Index of European Services and Manufacturing Report. This news is triggering a strong short-covering rally because it is sending a signal that the European Central Bank will likely hold interest rates at 1.0% at its next meeting on May 7.

The recent weakness in the Euro has been triggered by uncertainty regarding whether interest rates would fall below the 1.0% level. Today’s news seems to clarify things.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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