There is very little sustainable price movement in the market ahead of the Bank of England and ECB rate decisions at 07:00 and 07:45 EST respectively on Thursday. The open of the European markets offered nothing in the way of a gauge on sentiment and momentum and outside of sporadic yen moves, and some threats from aussie and swissy that they may break their neutral pivot point lines, there is not a lot going on.
The U.K. House Price Index and Euro-zone GDP numbers are released ahead of the rate decisions, but are unlikely to impede the sideways crawl that is likely to lead us to the rate announcements. U.S. equity futures numbers collapsed at the start of European trade, and in doing so allowed the Usd to garner buying interest. The subsequent bounce higher will now test that same buying resolve; the pattern of trade is happening each day, and at a micro level at the start of each regional trading session.
The bear market in equities is still dominating forex trade and still allowing very little to follow through and hold. We will now have to wait until after the rate decisions before seeing anything sustainable it seems; right now the market looks to be forced into dollar buying to hedge falling equities and however tedious it feels each day, that move is getting all of the attention.
The market signaled in trade on Wednesday that it is willing to sell the dollar on days that equities find buyers, and although still dominant in the mid to long-term, the greenback now has a near-term dollar index outlook that will question the resolve of those long the Usd if global equities can string together two days of gains. The 4 hour charts are still controlled by the Usd, there is no doubting that, but there is now doubt as to how long the dollar can get bought outside of the safety hedge against falling equity values. The halcyon days of dollar buying may now be thoroughly tested in the near-term.