There is almost only one big event on the stage of Forex - Coronavirus. How will currencies and commodities respond?
Trading EUR: await news from the ECB
Information is not investment advice
The ECB Monetary Policy Meeting Accounts will be released at 14:30 MT on January 16
The interest rate of 0% is out of the question for the ECB in the foreseeable future, as per the latest press releases. The inflation in the Eurozone still hasn’t reached the 2% target and is not expected to do that in the upcoming months. There are more and more forecasts that promise the further slowdown of the European economy. It’s hard to imagine that the Monetary Policy Meeting Accounts will change the picture. However, although the ECB President Christine Lagarde said previously that she is neither a hawk nor a dove, she mentioned that the quantitative easing will continue “as long as necessary”. We may have more clues on that in the document. In turn, more clues mean trade opportunities. If this policy is confirmed, the EUR will experience selling pressure.
- If the document presses on quantitative easing, the EUR will be under pressure;
- If the document is more hawkish than expected, the EUR will turn up.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
The Royal Bank of New Zealand held the interest rate at 1% today. As a result, the NZD rose by 50 pips!
Coronavirus pushse gold and currencies to where they have not been for years. What next?
The United States will publish its flash manufacturing PMI at 16:45 MT time on February 21.