MARKET DEVELOPMENT – ECB REMAINS CONFIDENT DESPITE GLOBAL UNCERTAINTY
EUR[1]: The Euro was initially firmer following the President Draghi’s press conference in which the President provided a relatively confident view on the Eurozone. While acknowledging that data had been weaker than expected, the ECB noted that the incoming information had been consistent with the central bank’s view, adding that underlying inflation is expected to pick up towards the year end. Topside resistance at 1.1430 has curbed further upside in EURUSD[2].
GBP: Following Theresa May’s speech at the 1922 committee, the Prime Minister looks to have done enough to bat off a leadership challenge in the near term. However, domestic political risks will continue to persist for the Pound until/if a withdrawal agreement can be reached. GBP[3] oscillating around the 1.29 handle with newsflow on the quiet side.
AUD[4]: The Australian is the notable outperformer this morning with the high beta currency benefitting from the bounce back in equity markets. AUD failing to break above 0.71, however, a break through may see the AUD hit 0.7150 against the greenback, provided risk on sentiment can persist.
DailyFX Economic Calendar[5]: Thursday, October 25, 2018 – North American Releases
DailyFX Webinar Calendar[6]: Thursday, October 25, 2018
IG Client Sentiment[7]: EURUSD Chart of the Day
EURUSD: Data shows 61.6% of traders are net-long with the ratio of traders long to short at 1.6 to 1. In fact, traders have remained net-long since Oct 01 when EURUSD traded near 1.16046; price has moved 1.8% lower since then. The number of traders net-long is 0.4% higher than yesterday and 27.2% higher
