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#1 07-09-2021 10:39:40

johnedward
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From: Paris - France
Registered: 21-12-2009
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EUR/USD: euro is the focus as Thursday ECB decision to be major

EUR/USD: euro is the focus as Thursday ECB decision to be major


The week ahead is full of important events, even though it started with a US holiday on Monday. Traders are focused on the Euro and the ECB's September meeting on Thursday.

The trading week started slowly as the U.S. and Canada were on holiday, celebrating Labour Day, but things got busy starting on Tuesday. Three central banks (Reserve Bank of Australia, Bank of Canada, European Central Bank) were scheduled to set and communicate their monetary policies this week in three consecutive days starting Tuesday.

Of the three, the European Central Bank's decision is the highlight of the trading week. Traders have been buying the euro ahead of the central bank's decision, as they expect the bank to signal the end of accommodative measures. The EUR/USD pair shown below jumped from its recent lows, reaching 1.19 last Friday.

http://www.forex-central.net/forum/userimages/eur-usd-4H.jpg


AUD, CAD, and the Euro

There is something for everyone to trade this week. On Wednesday, Canadian dollar traders will be following the Bank of Canada's decision. The USD/CAD pair has rebounded recently from 1.20 to 1.29 due to the weakness of the Canadian dollar rather than the strength of the U.S. dollar.

The main event of the trading week is the ECB decision. Now that the Jackson Hole symposium is behind us and the Fed has made it clear that it will not raise rates soon but will cut them this year, the market's attention is on the ECB. Will the ECB announce the removal of accommodative conditions this Thursday? Some traders think so, judging by the recent strength in the EUR/USD and EUR/JPY, which have rallied from their lows.

Finally, the trading week ends with the Canadian employment data. Combined with the Bank of Canada's decision a few days earlier, this data should provide more clarity for market participants interested in the future direction of Canadian dollar pairs.

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"Anything worth having is worth going for - all the way." - J.R. Ewing

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