CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
✖

EURUSD climbs as ECB officials fuel end of QE speculation

Article By: ,  Financial Analyst
June 6, 2018 9:38 AM

Ahead of next week’s major central bank meetings and key data releases, there have been some interesting moves in the markets with the EUR/USD in particular showing relative strength. Although the Federal Reserve is almost certain to raise interest rates next week, it is the European Central Bank which all of a sudden is looking to be the more anticipated meeting. Don’t get me wrong, there won’t be any surprise rate hikes or anything but top ECB policymakers have delivered hawkish remarks on the eurozone economy this week and this has led to some chatter that the central bank may announce its intension to end EQ at the end of the year, as early as at the next week’s meeting.

ECB’s Peter Praet has said that there is “growing evidence that labour market tightness is translating into a stronger pick-up in wage growth,” with Jens Weidmann echoing those views saying that inflation is “now expected to gradually return to levels compatible with our target.” Klaas Knot has added that the ECB should wind down QE as soon as possible. We have heard these views before and they are not entirely surprising. But the fact that they are coming all at the same time is what has bolstered end of QE speculation.

The speculation has helped to fuel a bit of a rally in the EUR/USD exchange rate, which has held back European stocks as they haven’t been able to match the gains seen on Wall Street of late. The EUR/USD has now broken above short-term resistance at around 1.1730, a level which could now turn into support upon a potential re-test. This comes after price reclaimed the broken swing low at 1.1550, a development which can be interpreted as a false break reversal pattern. Next potential resistance is seen at 1.1820 with the more significant area of resistance coming in around the 1.2000 handle where we also have the 50- and 200-day moving average converge with price.

Source: eSignal and FOREX.com

StoneX Financial Ltd (trading as "FOREX.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, FOREX.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date.


This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it. No opinion given in this material constitutes a recommendation by FOREX.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although FOREX.com is not specifically prevented from dealing before providing this material, FOREX.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. For further details see our full non-independent research disclaimer and quarterly summary.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Financial Ltd. StoneX Financial Ltd is a company incorporated in England and Wales with UK Companies House number 05616586 and with its registered office at 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with FCA Register Number: 446717.

FOREX.com is a trademark of StoneX Financial Ltd. This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy. FOREX.com products and services are not intended for Belgium residents.

© FOREX.COM 2025