Support becomes resistance in EUR/USD.
EURUSD two day chart
The market is trying to figure out what it all means for the ECB. The comments from Knot and a fresh report in the FT about QE make it sound like a done deal.
Compromise over risk-sharing does, however, raise the chances that Mario Draghi, ECB president, will be able to force through a large package of purchases of at least €500bn-worth of government bonds, or announce an open-ended commitment to buy sovereign debt until inflation approaches the central bank’s target of just below 2 per cent.
That’s dovish (especially something open ended) but the market is just as likely to trade on flows with the week winding down and the US out for holiday on Monday. The SNB mess continues to unravel as well.
