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Eurobulls Getting Anxious as Tonight’s ECB Presidential Speech Approaches

The dollar index (DXY) is trading in the positive zone on Tuesday. At the start of trades in Europe, the euro/dollar renewed to 1.1029 and the pound/dollar made it all the way to 1.5444. Demand for the USD rose throughout the market from these levels. The eurobulls are starting to get nervous as tonight’s speech to be made by ECB president Draghi approaches.

An eye was being kept on the euro/dollar as it broke through the hourly trend (from a 1.0896 minimum) and fell to 1.0971. The UK pound fell to 1.5402. Speculators preferred to stave off purchases of the GBP since the construction PMI didn’t quite meet expectations.

The business activity index for the UK construction sector was down from 59.9 to 58.8 (forecasted: 58.9).

Tonight the ISM and industrial order indices will be published in the US. Don’t bother expecting any wild fluctuations across the key pairs since traders are saving their strength for Thursday and Friday. Attention on Thursday will be on what the BoE’s Mark Carney has to say in addition to the Bank’s minutes which are set to be released. The NFP is out as usual on Friday.

At 19:00 EET the head of the SNB will speak and at 21:00 EET the ECB president will speak. The closest targets on the hourly are: GBP/USD – 1.5360, EUR/USD – 1.0945.

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