With the ECB meeting ahead key for EUR/USD, Ryan Littlestone, Director and Trading Analyst at ForexLive, outlines three things to watch ahead of the Eurozone rate decision, and further shares the trade setup for the EUR/USD into Draghi’s speech.
Three things to watch ahead of the ECB meeting
- Price data in manufacturing PMI’s
- Unemployment rates
- November inflation data
While Littlestone expects the ECB to act on Thursday’s meeting, he believes that the inflation data in the Eurozone will play a key role in deciding how much lower the deposit rates will go.
Trade setup for EUR/USD into the ECB decision
The EUR/USD is trading slightly firm on better data, says Littlestone. He further adds that the Fed will keep the bias for short EUR/USD trade, and after we see a rate hike, short dollar might be the trade to go.
On the trade opportunity into the ECB decision, Littlestone suggests selling the EUR/USD on any bounce if the ECB leaves rates unchanged.