ECB lower than expected rate cut boosts Euro

Instead of the expected 0.5 basis points slash in interest rate, the European Central Bank surprised investors yesterday with prudent 0.25 basis points cut only.

This created an immediate buying pressure on the European currency as interest differences between the Euro and other major currencies remain relatively high considering the situation global and European economies are in.

In addition, risk appetite in the market grew following the release of positive notes from the G20 meeting, stock market reacted with rallies, and the Forex market as usual, reacted with the weakening of safe haven currencies.

USDJPY – finally printed 100, after a clear price trigger, sending the pair above its first resistance  99.67, this is the king of trigger I was talking about in my post the day before yesterday.

Notice  AUDJPY, this pair trading again above 70 has a lot to say about investors confidence in the Australian dollar lately.

GBPUSD – continues with its upturn momentum, with some better than expected U.K economic news this week and the short demand for the dollar, the pair is now testing a major resistance area 1.4779. A clear break above, with support from weak dollar sentiment, could take us straight to 1.5 next week.

Z.Georgi

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