TRADING TIPS :
- Forex-Euro left reeling after ECB’s liquidity splurge.
- Forex-Euro steady ahead of ECB policy announcement.
- Forex-GBP/USD remains near 7-month lows
EUR/USD edged up 0.09% to 1.2957 but remained within close distance of Thursday’s 14-month low of 1.2918. The euro fell sharply after the ECB cut its benchmark interest rate to a record-low 0.05% from 0.15%, surprising most market analysts who had expected no change.In addition, ECB President Mario Draghi said the bank will begin an asset-backed securities program, to purchase non-financial assets, including covered bonds.The ECB also cut its forecast for growth this year to 0.9% down from 1.0% previously.Earlier Friday, official data showed that German industrial production rose 1.9% in July, beating expectations for an uptick of 0.3%, after a revised 0.4% increase in June.
GBP/USD hit 1.6287 during European morning trade, the pair’s lowest since February; the pair subsequently consolidated at 1.6319, easing 0.06%.Cable was likely to find support at 1.6250 and resistance at 1.6465, Thursday’s high.The pound came under broad selling pressure on Thursday after the BoE voted to keep interest rates on hold at 0.5% and to keep the size of its asset purchase program unchanged at £375 billion.The minutes of the meeting, due to be published in two weeks, would indicate how many monetary policy committee members voted in favor of a rate hike. The MPC was split last month, with two members voting in favor of a rate increase and two against.
1. Buy EUR/USD Above 1.3004-TG:1.3024/1.3054 SL 1.2974
2. Sell EUR/USD Below 1.2898-TG: 1.2878/1.2848 SL 1.2928