It was a bloodbath for the EURUSD bull after the ECB conference. The euro plunged to the 1.1640 level against the U.S. dollar on the dovish ECB.
The EURUSD moved sharply lower from slightly above 1.17 to near 1.1640 after the ECB president, Draghi, confirmed that the interest rates will remain low at least until September 2019. This has also affirmed the outlook that the overall economic picture has not changed. The U.S. economy remains strong, which will keep the U.S. dollar strong despite Trump’s effort to talk down the U.S. dollar. The Fed will continue to raise interest rates this year. The ECB and the Bank of Japan are still very dovish regarding their monetary policies.
Tomorrow, we will get the U.S. Q2 GDP. Perhaps, based on the current U.S. dollar strength, traders have already priced in a strong GDP reading. If the figures do not meet the expectations, we may see the dollar weaken. However, the Fed would still stay on its path to raise the interest rates gradually.
There has been no trade from my MT4 EA since the last update.
The previous week’s result can be found here.