ECB is monitoring strengthening in the euro
- Euro strength would take prominence for ECB if it threatens inflation outlook
- ECB taking a holistic view on financing conditions
- ECB hasn't reached lower bound, still room for rate cuts
- Too early to talk about exit from low rates
- There should be room for optimism after the summer
This is knocking the euro a little lower on the day, with EUR/USD falling to 1.2120 currently - creeping below its 200-hour moving average. There is also a slight dollar bid across the board as we see commodity currencies ease to session lows on the day as well.
Further Development
Analyzing the current trading chart of Gold, I found that sellers are in control and as I predicted the downside cycle is active with potential for the test of the support levels at $1,830 and $1,810.
Key Levels:
Resistance: $1,850
Support levels: $1,830 and $1,810.
