AMarkets App

AMarkets App

The best trading app

The best trading app

ratings of app
Download

Traders focus on the ECB meeting

June 09, 2022

GBP/USD: Sterling fell on Wednesday, staying close to a near three-week low against the U.S. dollar, amid investor concerns about a confidence vote on British Prime Minister Boris Johnson that left him politically vulnerable. Political uncertainty has added further pressure on the sterling, which has declined more than 7% this year, weighed down by Britain’s dismal growth outlook. The further dynamics of the British currency will largely depend on the dollar, which, apparently, does not intend to give up leadership to risky assets. The prospect of US policy tightening next week supports buyers. Immediate support is seen at 1,2500. A breakout below could take the pair towards 1,2400.

SELL STOP 1,2500/TP 1,2400/SL 1,2540

 

USD/CAD: The Canadian dollar weakened against the U.S. dollar on Wednesday, pulling back from its strongest level in nearly seven weeks, as risk appetite waned ahead of key macro events in the coming days. The price of oil, one of Canada’s major exports, was up nearly 3% at $123 a barrel, supported by rising U.S. demand for gasoline despite record pump prices. On Friday, data on the Canadian labor market will be published. Strong statistics coupled with rising oil prices may help the Canadian dollar strengthen its position. Immediate support is seen at 1,2520. A breakout below could take the pair towards 1,2450.

SELL STOP 1,2520/TP 1,2450/SL 1,2550

 

EUR/USD: The euro steadied against the dollar on Wednesday ­­as investors focused on the European Central Bank’s meeting on Thursday and U.S. CPI data on Friday. Investors raised their bets on ECB rate hikes, and as European markets opened, money markets were pricing in 75 basis points of rate hikes by September. With the bank largely expected to start hikes in July and move in 25 basis-point steps, the pricing implies that traders now expect its hikes to include a rare 50 basis-point move at a single meeting by September. Immediate resistance can be seen at 1,0750. A breakout to the upside can trigger growth towards 1,0820.

BUY STOP 1,0750/TP 1,0820/SL 1,0720