Today the focus is on the growth of employment in Australia, statements by the US Treasury Secretary, and also — a hint of negative rates in the minutes of the Bank of England.
There will be a speech by the Vice-President of the ECB, Luis de Guindos. The event may cause an increase in the volatility of the EUR currency pairs.
Assets for trading: EUR/USD, EUR/CHF.
In Australia the employment rate has increased sharply. Affects AUD
The Bank of England refrained from introducing new economic stimuli, but is stepping up discussions on negative rates. Affects GBP
The OPEC+ technical group has warned of a drop in oil demand in selected countries due to COVID-19. Affects Brent
US Treasury Secretary Stephen Mnuchin confirmed the continuation of work on an economic stimulus package. Affects USD
A World Bank spokesman warned of a possible financial crisis in the Asia-Pacific region. Affects JPY
Talk about central banks considering the introduction of negative rates has been going on for a long time. Although the Bank of England kept this key rate at the same level of 0.1%, the minutes of the meeting disclosed information that managers are studying the impact of negative rates on the economy. It is possible that in the near future the regulator will decide on such actions.
Against this background, the British currency began to decline again. It is likely that the chart will finally lose support from the trend line, and traders will be able to capitalize on a strong bearish trend.
The classic head and shoulders pattern heralds a fall in the euro.
The currency pair has not exhausted its technical growth potential. The asset price is likely to surpass 0.90000 in the near future.
NZD/CAD on this day in history
- Since 2000, Sept 18th has been a trading day 14 times.
- On 78% of those days, the asset finished trading with growth.
- The maximum strengthening range was 1.65%.
- The downward trend was limited to 1.18%.