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MARKET BRIEFING – LONDON OPEN 09.03.2016
Euro declined as the next meeting of the European Central Bank is approaching this Thursday. Markets have already priced in a further loosening of the monetary policy, with the deposit rate expected to be cut by at least ten bps to -0.4%.
The possibility of the boosting the amount of the QE assets purchases also remains in place. Some economists expect the bond-purchase programme to be increased by 10 billion euros a month, totalling 70 billion euros.
EURUSD was trading below the 1.10 key level this morning. The pair has reconfirmed the breach of the daily upward trend channel which occurred two weeks ago, suggesting a move lower might be ahead.
Oil has recently been trading higher. However, yesterday afternoon commodity tried to correct lower after it reached a three-month high in the morning. Thus, Brent oil is trading at US$ 40.00 psychological level this morning, whereas WTI is fluctuating around US$ 38.00 mark.
The crude oil inventories release this afternoon will likely to define the oil price direction further. Currently, analysts expect an increase in stocks by 3 million barrels this week, after the index shown a 10.4 million increase last time.
With respect to today’s economic calendar, the European trading hours are promising to be quiet with regards to any major releases, which could affect the market. In the afternoon session, the Bank of Canada and the Reserve Bank of New Zealand will come up with their policy statements, which could cause volatility in the Canadian and New Zealand dollars correspondingly
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.1100
Target 2: 1.0920
Projected range in ATR’s: 0.0089
Daily control level: 1.1060
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.4360
Target 2: 1.4060
Projected range in ATR’s: 0.0149
Daily control level: 1.4130
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 113.75
Target 2: 111.45
Projected range in ATR’s: 1.15
Daily control level: 114.30
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.0045
Target 2: 0.9870
Projected range in ATR’s: 0.0086
Daily control level: 0.9895
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3535
Target 2: 1.3280
Projected range in ATR’s: 0.0128
Daily control level: 1.3260
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7525
Target 2: 0.7350
Projected range in ATR’s: 0.0087
Daily control level: 0.7400
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1283.50
Target 2: 1239.00
Projected range in ATR’s: 22.59
Daily control level: 1278.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 38.00
Target 2: 34.50
Projected range in ATR’s: 1.76
Daily control level: 35.95
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