The major event risk for the week was the ECB interest rate decision, policy statement and press conference.
ECB’s Mario Draghi left interest rates unchanged, but concern about the economy of Germany and the E.U. will continue to offer opportunities to fade any rallies.
The USD was able to continue upward today and a long entry was found in the USDJPY after the ECB press conference…risking 15 pips for a potential 37 pips to our daily target at 108.58.
Price moved higher, paused, pulled back just a few pips, then moved to our daily target in advance of the U.K. close.
Tomorrow the GDP and Michigan consumer sentiment releases will be closely watched. Traders are still deciding whether the Fed will cut the interest rate by 25 or 50 bp on July 31st.
Good luck with your trading!
