The ECB's incentive policy | 16 April 2019

16 April 2019, EUR/USD

The ECB's incentive policy

EURUSD trading plan:

Investment funds sell the Euro. Active sales are observed for two weeks in a row - this is stated in the CFTC reports. The European Central Bank is committed to keeping monetary policy loose until inflation returns to its target -said ECB policymaker Francois Villeroy de Galhau. The Eurostat European statistics agency estimated euro zone inflation eased in March to 1.4%, while core inflation, which excludes volatile items like energy, slipped to 0.8%. The ECB's incentive policy will have a negative impact on the value of the Euro and a positive impact on the value of European stock markets. We can expect a decline in the Euro and the growth of the index #DAX30.

Trading recommendation: Sell 1.1320 and take profit 1.1280.

David Johnson
Analyst of «FreshForex» company
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