European trading session wrap and what to expect this afternoon

This morning’s trading session in Europe was affected mainly by this factors: The ECB’s decision regarding the interest rates today, the exceptionally good data from the ADP in USA and the decline in Oil’s prices.

The biggest influence on today’s markets has the ECB’s meeting today at 14:45 local time and the Mario Draghi speech at 15:30. Markets are generating the probability, that ECB will leave the rates untouched, but won’t continue it’s QE program after 2017. Mainly these expectation lead to the light rising in EUR versus USD. However, the good ADP data from the States don’t allow the positive sentiment to expand over the EUR, therefore the rise is more of a correction rather than a movement.

The better data from USA will heighten the expectations for a better data from the NFP tomorrow. This, combined with a positive outlook from Mario Draghi leads to a decline in JPY prices.

USD/JPY managed to get over the diagonal support, which opens the road for a new bullish trend. There could be a slight correction till 114.60 levels.

The stock markets generates the decline in Oil’s price due to the bigger supplies, as the energy stocks are weighting in and pushing the indexes in negative territory.

The euphoria around Trump starts to lose momentum and a lot of concerns come to focus, more of which are linked with the fact, that the market generated a lot on Trupm’s promises for a tax cut, and still there’s nothing on the table by his end.

This afternoon’s sentiment will be mostly affected by the ECB’s meeting, as for the moment we expect a negative U.S trading session and EUR/USD making a correction till 1.0575 levels. It is possible to witness a new bullish movement in USD/JPY after the 114.60 correction and a continuing decline in AUD/USD.

GOLD: Gold continues it’s declining movement, generating almost the certain rate hike in the States. A rate hike is considered bad for the commodity. The movement will probably continue and before that we can see a slight correction till $1206 per ounce amid Mario Draghi’s statement.

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