The Markets are waiting now for the ECB's interest rate decision which is widely expected to be for keeping the interest rate unchanged at 1.5% following July hiking by 0.25%, after easing of July EU CPI preliminary reading to 2.5% from 2.7% in June and the market will be focusing on the ECB's president language in the press conference following the decision to know whether or not it will maintain its view that the prices risks are still to the upside or not while it's widely expected to see turning back to the mantra that the ECB is very closely watching the prices which always hints to the markets that there is no close rate hike decision from saying that strong vigilance is warranted which always refers to a coming hiking decision.
The single currency is trading now at 1.423 versus the greenback after the release of June Germane Factor orders which have shown rising monthly by 1.8% as a the same as May while it was expected to decline by 0.1% comparing with June US factory orders which have shown yesterday declining by 0.8% monthly while the markets were waiting for decreasing by 0.4% after rising by 0.6% in May.
God willing the single currency next supporting level versus the greenback is expected to be again at 1.414 level which have supported it previously after falling from 1.4452 to rise again forming a another lower high at 1.437 which is the pair next resistance currently.
The markets will be waiting also today by God's will, for the release of US initial jobless claim which is expected to show rising to 408k from 398k a weak earlier after the release of July US ADP Employment change which came at 114k while the market was waiting for adding just 102k from 157k in June which supported the US stocks markets yesterday with optimism to have better than expected data from the US Labor report of July which is scheduled to be released tomorrow and it is expected to contain rising of July US non-farm payroll to 90k from 18k in June keeping the unemployment rate unchanged at 9.2%.
FX Market Strategist
Walid Salah El Din