The Euro is trading a little lower versus the U.S. Dollar this morning. Indecision seems to be the theme as traders mull over whether the European Central Bank has enough economic data to support an interest rate hike as early as next week. The lack of clarity and conviction from the ECB is helping to keep bullish traders on the sidelines at this time.
U.K. Inflation Still Hot Topic with Bank of England
ECB Signals Hawkish Tone but Concerns Still Remain
The Euro is trading slightly lower after a breakout over the last swing top at 1.3434 failed to attract fresh buyers. Although the move through this level turned the main trend to up on the daily chart, the lack of momentum indicates the market may pull-back, allowing bullish traders to regroup, before moving higher.
Euro Rebounds on Renewed Asian Interest; Ireland Debt Still Concern
Stocks Rally then Falter; Investors Still Reluctant to Chase Higher.
The firm Dollar is helping to keep downside pressure on December Silver. This week the Greenback has shown signs of bottoming which is encouraging investors to pare positions.
Volatility is also a little higher as risk sentiment appears to be shifting. Uncertainties over the size and shape of the Fed’s expected quantitative easing package continue to be the force pressuring this metal.
Euro Slightly Better but Reversal Top Still a Threat to Rally
The Euro is trading slightly better this morning. Some traders attribute the strength to Ireland’s denial that it will need outside financial aid. The fact that the market is trading inside last Friday’s range could be an indication that investors remain skeptical about Ireland’s financial condition.