Some news and services are reporting that ECB’s Nagel is saying that the central bank is likely to raise rates by 25 basis points next week. The comments mirror earlier ones today:
- Inflation is a greedy beast
- It would be a mistake to ease up on the fight too soon and cut interest rates again prematurely
- Practically everyone expects an increase of 25 basis points next week
The EURUSD is trading up and down today in a relatively modest 44 PIP trading range. The average of the last 22 days is around 70 pips.
The price action has also seen trading above and below its 100 hour moving average of 1.12279. The current price is trading below that level at 1.1218. Although traders has made a mess of the moving average, the MA remains a short-term bias/barometer for traders. Stay below is more bearish. Move above is more bullish.
This article was written by Greg Michalowski at www.forexlive.com. Source