The market sentiment is mixed, but there are still interesting movements on the market.
All attention to EUR after ECB rate statement
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.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.