EURGBP Rebounds
EURAUD is trading at 1.6330 after drifting lower for the last four days. The pair is consolidating but there is big economic shifts ahead this week.
The first release today is the German ZEW business sentiment index. Today’s reading is expected to come in at 45.5 after last month’s 39. The Aussie dollar will also see a sentiment indicator tomorrow with Westpac consumer confidence, which is expected to show 107.7. The deputy Governor of the Reserve Bank highlighted the lower Aussie as a boost for consumers and jobs recently, hinting that they are happy with stimulus.
The euro is still at risk from Brexit as talks enter a critical week. The EU27 meet for a summit on Thursday and officials are hoping for a deal to be agreed by tomorrow. Thursday will also see the latest European Central Bank decision on interest rates and monetary policy. The bank should hold rates steady but traders are expecting a boost to stimulus via bond purchases and low rate loans for banks. The ECB could even surprise to the upside in a bid to tackle the rising Euro.
EURAUD is trading at 1.6347 and the path ahead sees resistance at the 50-day moving average at 1.6400. The next levels up are at 1.6550 and 1.6800. If the EURAUD moves lower then key support is at 1.6150. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
