EURUSD – Up
EURUSD trading plan:
The European Central Bank looks set to deliver another interest rate hike on Thursday, but turmoil in global bank stocks makes the outlook suddenly uncertain. A surprise surge in underlying inflation in February had left policymakers fretting that price pressures could prove persistent. Now, confidence in a large 50 basis point hike has weakened as turmoil in the U.S. banking sector raises fears about contagion in Europe. ECB President Christine Lagarde said recently a 50-basis points rate hike „is very, very likely“. Yet traders cut their bets on such a move to around a 40%. The ECB is meanwhile expected to stick to plans for shrinking its balance sheet by 15 billion euros a month through June.
Investment idea: buy 1.0678 and take profit 1.0767.
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