Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Will the ECB president change his tone?
Information is not investment advice
The European Central Bank will publish its monetary policy statement and announce the official rate on July 25, at 14:45 MT time. After that, the ECB president Mario Draghi will conduct a press conference at 15:30 MT time. We anticipate no changes to the current interest rate, which is held at 0%. However, the ECB president Mario Draghi may throw hints on the possible changes to the current monetary policy and provide comments on the current economic outlook. Last time, Mr. Draghi suggested that the European economy needed additional stimulus for better conditions. His dovish comments pulled the euro lower. If the ECB president changes his tone this time, the situation will be different.
• If the ECB is hawkish, the euro will rise;
• If the ECB is dovish, the euro will fall.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.