- Expectation for ECB Press Conference – Fundamental Analysis, for September 04, 2012
Strong investors’ expectations ahead of the ECB meeting next Thursday are giving strength to the euro against the dollar and other leading currencies in these hours.
Although the president of the entity, Mario Draghi, avoided giving clues about the following actions taken this week in terms of bond purchases (we know that Germany is opposed to it at least until the last few hours), the presumption is finally carried out such a measure.
Under such circumstances the euro rate accelerated, however, it has failed to break the strong resistance of 1.2630 against the dollar, which was surpassed only on Friday amid Ben Bernanke’s speech in Jackson Hole.
The other currencies demonstrated no major changes in the beginning of this week. The pound failed to overcome the 1.59 area, and today construction PMI data gave negatively affected the currency, below the expansion line (49 points).
The Australian dollar continues to show signs of decline with amid weak manufacturing statistics from China, Australia’s main market. However, the cross AUD / USD on Monday left a gap during the Asian session at 1.0330, which could be covered in the coming hours. In order to validate this scenario, the price should exceed 1.03 downtrend line on 4-hour chart.
The currencies linked to oil are without significant changes, like price for barrel which grows very slowly.
The gold again demonstrates bullish dynamics. The ounce broke the top of a trend continuation figure in the weekly chart (a triangle), and meets the overall objective of the same price which could reach $ 2,000 in the coming months.
The day’s news agenda, the U.S. ISM manufacturing, expected to hit 50 points, elevation is dangerous if broken down.
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