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EURUSD Might Claw Back Some of Yesterday’s Losses, IFO on Deck

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Written By: Alejandro Zambrano

Oct 25, 2019, 06:52 BST 06:52

EURUSD

Summary:

As trading was about to start in the new day in London, it appeared that the EURUSD was ready to claw back some of its losses, like the AUDUSD and NZDUSD.

The EURUSD pair has spent the overnight session around last evening’s closing price. However, as the trading was about to start in the new day in London, it appeared that the EURUSD was ready to claw back some of its losses, like the AUDUSD and NZDUSD had started doing.

Looking beyond the near-term price action, the EURUSD trend will remain downwards below yesterday’s high of 1.11627, as the price created a lower low by trading below the October 23 low following yesterday’s ECB rate meeting. The strength in the dollar was mirrored in other USD pairs, suggesting that yesterday’s decline might find legs.

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Trades will be watching the German IFO index at 9 am London time. Economists anticipate the Business Sentiment index to decline to 95.4 from 95.5. The German info index has a good correction to German GDP, and will probably create some volatility in the EURUSD pair. However, unless the number is very strong or weak, I doubt the trend in the EURUSD will change.

Written By: Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing. Zambrano was the Chief Market Strategist of the FCA regulated broker, Amana Capital. Prior to that, he was also the Head Analyst at FXCM’s London research desk. Interact with Alex via Twitter at @AlexFX00.