Valeria Bedbnarik, chief analyst at FXStreet explained that the majors continued trading on sentiment this Wednesday.
Key Quotes:
“Majors continued trading on sentiment this Wednesday with little in the macroeconomic calendar to trigger moves, although uncertainty over what the ECB may have to offer this Thursday, kept the EUR/USD pair on the move.”
“As largely expected, the pair traded within its latest range, down to 1.0945 as risk aversion dominated the first half of the day, but then up towards 1.1034, as stocks ended higher in Europe and turned north in the US, pushing the negative sentiment back. All eyes are now on the European Central Bank, largely expected to extend its economic facilities, in light of latest deflationary reading in the EU.”
“According to an initial estimate, inflation fell by 0.2% during February, back into negative territory after four months holding right above zero. Additionally, the Central Bank has suggested they are willing to cut the deposits rate by 10bp, but there’s a good chance the decision will be reinforced with another measures.”
(Market News Provided by FXstreet)