Traders Eye ECB Decision, Stock Market Breadth Improved

Traders do not want to bet heavily ahead of today’s main event which is the ECB monetary policy decision. It is widely expected that the ECB is likely to strike a dovish tone, and weakness in inflation may push the ECB to change its inflation forecast.

If the bank lowers its inflation forecast today and doesn’t sound too optimistic about the economic performance of the EU, it is likely that we may see some serious weakness for the euro-dollar pair. It is currently trading at 1.1856. And, if the ECB does what is mentioned earlier, the pair is likely to fall near the 1.1650 mark.

However, if the bank shows a more relaxed attitude, we could see a sharp move to the upside for the EUR/USD pair. Nonetheless, one thing is pretty much a given: the euro-dollar pair is going to experience higher volatility today.

It was a recovery day for the U.S. stock market. The Dow Jones breadth shows that 67% of the Dow Jones stocks traded above their 200-day moving average yesterday. This is a change of +4% from a day earlier,  

The S&P 500 stock breadth also had a bit of fresh air and recovered its strength. 59% of the shares traded above their 200-day moving average yesterday. This represents a change of +2% from a day earlier.  

The S&P 500 stock index was in a recovery mode yesterday and it advanced 2.01%. The information technology sector led the index higher, and all of the eleven sectors closed higher. 

Qorvo (NASDAQ:QRVO) stock contributed the biggest gain, soaring 7.54%. Tiffany stock was the largest drag; it fell by 6.44%. The S&P 500 stock index’s is up 9.6% during this quarter.

The Dow index soared 439 points yesterday, and the Dow stocks moved the index lower by 1.60%. 25 stocks of the Dow Jones Index increased in value, and 5 shares of the Dow index moved lower. Salesforce stock advanced higher by 3.8% and was the biggest mover for the Dow, while Disney stock dropped 0.63%, the biggest drag for Dow Jones industrial

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