Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Can ECB Surprise Traders?
What will happen?
The European central bank will announce the main refinancing rate and make a monetary policy statement at the ECB press conference on Thursday, June 9, at 14:45 MT. It happens eight times a year. The central bank will share the current interest rate details and give the overall economic outlook and inflation forecasts. In addition, the ECB may provide clues about future monetary policy.
How can EUR react?
At the last meeting, on April 14, there was nothing particularly negative in the ECB statement. In a press statement after the meeting, Christine Lagarde claimed that the eurozone was more vulnerable to the Russian-Ukrainian crisis than the US, and that’s why the ECB can’t guarantee growth. The forecast made by the ECB was more “stagflationary.” Thus, it isn’t clear if the faster risk hikes are coming due to rising consumption. It would be the most obvious positive outlook for the euro.
The previous meeting brought volatility to the EUR. After the announcement, EURGBP lost more than 200 points, and after the press conference, there were around 450 points down.
If you traded 1 lot at that time, you would have earned $604.
How to trade on the ECB meeting?
If the ECB statement is more hawkish than forecasted, EURUSD will likely rise. In a more dovish situation, EURUSD will likely fall.
Check the Economic Calendar.
Instruments to trade: EURUSD, EURCAD, EURGBP.
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
The USD weakened after Fed Chair Powell hinted at a slowdown of rate hikes, and stocks strengthened. What else is moving the markets today?
The winter is coming, and risky markets expect a rally to come with it. Will this December be bullish for stocks, crypto, and gold? A pack of news will surely help you out.
Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today! Key market events: 15:30 MT, CAD GDP m/m 17:00 MT, GBP BOE Gov Bailey Speaks Oil is tensed again Oil rose as China refined its approach…