The European Central Bank will expand the size of its monthly asset purchases on Thursday, according to a Reuters poll of traders, who also expect another cut to the already negative deposit rate.
With pressure building on the ECB to ease policy further, euro money market traders polled gave a median 68 percent chance the central bank increases its current 60 billion euros of monthly asset purchases.
That is higher than the 50-50 chance they gave just last week. Traders also said the ECB would cut its deposit rate by 10 basis points to -0.4 percent.
The regular poll of 21 traders showed banks would borrow 60.0 billion euros ($65.7 billion) at the weekly tender, just a tad lower than the 61.3 billion euros maturing from last week.
Shayne Heffernan takes a look at EURUSD
EUR= closed down -0.004 at 1.096. Volume was 48% below average (neutral) and Bollinger Bands were 18% wider than normal.
Open High Low Close Volume___
1.101 1.101 1.094 1.096 31,642
Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.09 1.10 1.10
Volatility: 8 11 13
Volume: 70,237 64,457 66,472
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
FOREX EUR= is currently 0.8% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of EUR= (mildly bearish). Our trend forecasting oscillators are currently bearish on EUR= and have had this outlook for the last 6 periods.
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