EUR could be on the move later today when the CPI report for February from the euro area and ECB minutes are released at 10:00 am GMT and 12:30 pm GMT, respectively. CPI reading may draw more attention as it will be more timely - keep in mind that ECB minutes will be a recap of discussions from around 3 weeks ago and therefore views included may be outdated. In fact, many ECB members have struck a hawkish tone since the latest meeting with ECB President Lagarde saying this morning that a 50 bp rate hike at the March meeting is still on the table. This has provided some support for EUR this morning and put some pressure on European equities. Lagarde also said that she does not expect recession in the euro area and that inflation should start to slow from march due to base effects.
Taking a look at EURGBP chart at D1 interval, we can see that the pair has climbed to the 0.8900 resistance zone yesterday. An attempt to break above was made today on the back of Lagarde's comments but those gains were already erased. Nevertheless, another attempt cannot be ruled out given two potential EUR-volatility events later in the day (CPI and ECB minutes). Also the pair may see some action during speeches from ECB Schnabel (12:30 pm GMT), BoE Tenreyro (1:00 pm GMT) and BoE Pill (3:00 pm GMT).
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
