According to reports, the President of Euro Group Juncker said that the temporary relief fund for the region and the ECB is prepared to take joint action to reduce the cost of financing.
In addition, on Thursday, the Federal Reserve, the United Kingdom and the European Central Bank, the three most important central bank in less than 24 hours have been published interest rate decisions. The past, the laws of the market, from the beginning of the day at noon prior to publication of draft resolution, the United States, Britain, Germany and other major markets stock index began to rise, until the announced policy decisions, the rally will stop a little. Since 1994, the U.S. stock market returns 80% of the premium than the short-term bond yields are produced in the 24 hours before the policy announcement.
Credit Suisse data show that the ECB is likely to cut interest rates by 25 basis points on interest-rate meeting, the news that the European central bank governor Mario Draghi may before this meeting with the German central bank governor Weidman discuss the bond purchase, interest rate cuts and LTRO problem , if the period is conducive to the good news spread, the risk assets is expected to extend gains. U.S. non-farm payrolls are expected to led the risk of currency to the euro positive, the non-farm employment is expected to increase by 10 million, before the value is 80000, if actual results are consistent with this risk sentiment may pick up further. But the market is not the lack of bad news, although Germany said it would do its utmost to defend the euro, but still opposed to the unlimited ECB to buy government bonds and the banking license issued to ESM.
Euro rebound expected limited
The euro against the dollar Monday fall within a narrow range. The rebound of the euro in the current situation is likely to continue into the ECB rate decision on Thursday when the fundamentals of the euro is still fragile, short attention to profit-taking, until the time a better position to continue shorting the euro. From the point of view of the daily chart, the euro against the U.S. dollar is still expected space repeatedly downlink channel, the rally, limited attention to the resistance of 1.2450 and 1.26, 1.22 and 1.21 support, rallies, look for an opportunity to sell euros to buy dollars.
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