The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
All attention to EUR after ECB rate statement
Information is not investment advice
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
Instruments to trade: EUR/USD, EUR/CAD, EUR/GBP, EUR/JPY, EUR/NZD, EUR/AUD, EUR/CHF
The main refinancing rate is likely to stay unchanged. Instead of that, traders should focus on the ECB statement and the press conference. It’s expected that the ECB will boost its Pandemic Emergency Purchase Programme (PEPP) with an additional 1 trillion euros. Economists consider that the central bank will increase the PEPP to reach the target rate of inflation at nearly 2%. It will prove that officials shift their focus from the short term to the medium term goal – from mitigating crisis to supporting economic recovery. Pay attention on economic guidelines that officials will give. It’s really important as it will define the future movement of the Euro.
If the ECB leaves everything unchanged and gives pessimistic forecasts, the EUR may fall.
If the ECB increases the size of PEPP and gives optimistic forecasts, the EUR can rise.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The RBNZ will make the monetary policy statement on August 12 at 5:00 MT time!
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
The US NFP will be published on August 7 at 15:30 MT time.