Euro finds a few buyers again as ECB looms large

Dip demand prevailing again for the euro 24 Jan

The ECB policy statement and presser tomorrow have been casting a shadow for a while and we've seen the euro lagging a bit despite EURUSD posting 3-year highs in the wake of a soggy USD.

The last hour or so though has seen EURUSD advance further to 1.2382 and dragging with it EURGBP to 0.8727 from 0.8711 lows, EURJPY to 135.48 from 134.90 and EURAUD to 1.5348 from 1.5280 to name just three. The exception has been EURCHF which has fallen to 1.1684 but that is down to the general CHF demand in these fragile times.

EURJPY 15m

EURAUD 15m

I'd say it's as much about covering a few shorts ahead of tomorrow's big event as anything. I often say here that flow is all and there is a big danger in over-analysing every move.

Keep it simple, as well as keeping an eye on other related pairs to get a decent perspective on the various moves. I've often heard comments like "the pound is strong" or " euro is weak" when on closer inspection it may only be the core pair that is showing that sentiment.

It pays to take a look at the bigger picture, particularly when Mr D starts conducting proceedings tomorrow.