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On January 11, the 2025 Spring Festival travel plan for the Yangtze River Delta Railway was recently released. It is expected that 97 million passengers will be transported during the 40 days of the Spring Festival travel, with an average daily passenger volume of 2.425 million, a year-on-year increase of 5.1%, setting a record high. The Yangtze River Delta Railway Department plans to add 398.5 pairs of passenger trains on the basis of using the peak operation diagram. During the peak period, the maximum number of passenger trains will exceed 1,700 pairs per day to actively respond to the large passenger flow during the Spring Festival travel.On January 11, Sergey Lebedev, coordinator of the pro-Russian underground organization in Nikolayev Oblast, Ukraine, told RIA Novosti on January 10 that witnesses reported large-scale transportation of NATO equipment in Poland. Lebedev said: "In recent days, a lot of information from Poland shows that NATO is transporting a large number of personnel and equipment. The scale of equipment transportation is so large that it is impossible not to be discovered." Lebedev believes that Western countries are preparing for a conflict between Poland and Russia and a possible blockade of Kaliningrad. He said: "The West is waging war against Russia in Ukraine, and they will do everything they can. They dont care about the lives of the Poles, just as they dont care about the lives of the Ukrainians."On January 11, Ant Group and Good Doctor Online appeared on the same stage for the first time after completing the acquisition. Both parties said they would jointly promote the AI of medical services, improve doctors work efficiency with AI, and released an "AI assistant" to help doctors popularize science and manage medical records.Ukraine said Russia launched 74 drones during the night, 47 of which were shot down and another 27 failed to reach their targets.Russian Ministry of Defense: A Mi-28NM helicopter of the Russian Aerospace Forces prevented the rotation of Ukrainian troops in Kursk Oblast and destroyed Ukrainian armored vehicles and personnel.

EUR/USD Rebounds from Support Ahead of the ecb Central Bank's Decision. What Should Traders Anticipate?

Drake Hampton

Apr 14, 2022 10:28

Tomorrow, the European Central Bank will release its April monetary policy statement. While no interest rate adjustment or fresh macroeconomic projections are anticipated at this meeting, this does not mean the gathering will be boring; on the contrary, the gathering may generate significant volatility, notably for the euro. Traders should pay close attention to policymakers' assessments of the economic outlook, as well as their recommendations on future measures, particularly any comments on asset purchases in light of quickly shifting market conditions.

 

After years of battling to keep inflation below the 2% objective, the picture shifted substantially in the aftermath of the pandemic, and even more dramatically in recent months following Russia's invasion of Ukraine. Now, the ECB is confronted with the inverse situation: soaring inflationary pressures; indeed, the euro area's headline CPI hit a record high of 7.5 percent last month amid soaring energy costs, raising concerns that the institution is falling behind the curve in its fight to restore price stability.

 

Although some central bank members appear to be eager to unwind stimulus more aggressively and have echoed this sentiment, it is unlikely that President Christine Lagarde will deliver any major surprises, particularly given that downside risks to the growth profile have increased and now threaten to tip the economy into recession.

 

Lagarde, on the other hand, might modify recent communications and indicate that the asset purchase program could finish early in the third quarter, as opposed to the previous imprecise judgment that the bond-buying scheme will end sometime in the third quarter.

 

While the progressively hawkish message is not a significant divergence from prior pronouncements, it may help solidify expectations for the first interest rate hike in September, a scenario that might trigger a temporary bull run in the euro. That said, there is some room for EUR/USD strength in the coming days, but not for sustained gains, as the Fed's significant monetary policy divergence from the ECB continues to act as a tailwind for the US currency.

 

Technical Analysis of the EUR/USD

 

EUR/USD appears to be recovering from a crucial support level near the psychological 1.0800 level ahead of the ECB announcement (EUR/USD is up 0.37 percent to 1.0879 at the time of this writing). If the pair continues its upward movement in the coming sessions, initial resistance is seen near 1.0950. If this ceiling is breached, purchasing interest may increase, clearing the way for a probable advance towards 1.1135. If, on the other hand, the sellers return and push the exchange rate lower, 1.0800 appears to be a support level. If this floor is strongly breached, EUR/USD may test 1.0730, followed by the 2020 bottom.

 

EUR/USD Technical Chart

 

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