Later today, the calendar is very thin with only some second tier eco data on the calendar in Europe. During the weekend, global regulators allowed an easing in the liquidity rules for the banking sector. This might be a slightly positive for European equities. However, it won’t be a big issue for EUR/USD trading. So, one can expect more technically inspired trading today.
Also further out this week, the calendar is only moderately interesting. Most attention will go out to the ECB meeting/press conference. Our working hypothesis is that the ECB will leave its policy rate unchanged but Draghi will maintain his soft tone, keeping the door open for more policy stimulation if needed. Markets will also keep an eye on the internal debate within the ECB whether or not the deposit rate can/should be cut below zero at some point in the future.
So, at the start of the new trading week, there are not many high profile issues on the agenda to guide EUR/USD trading. In this context, technical considerations should prevail.