The ECB Monetary Policy Meeting Accounts will be released at 14:30 MT on January 16
ECB meeting is key for the EUR
The euro is under pressure. Its fall continues since the middle of April. EUR/USD reached the lowest levels since November 2017. A strong plunge of the single currency is caused by the weak economic data. The European economy suffers because of political problems in Italy, the Brexit deal, and trade wars.
The European Central Bank will release the interest rate at 14:45 MT time on June 14. At 15:30 MT time, the central bank will hold a press conference.
The ECB has been keeping the interest rate on hold since March 2016. Investors don’t expect the interest rate to be changed as the central bank hasn’t ended the quantitative easing yet. At the previous meeting, the ECB stated that “members broadly agreed that an ample degree of monetary policy accommodation remained necessary to accompany the economic expansion and secure the gradual convergence of inflation to levels below, but close to, 2%. The remaining uncertainties and the still muted underlying inflation pressures continued to justify caution and underlined the need to maintain patience, persistence, and prudence with regard to monetary policy”. It puts additional pressure on the euro.
If the central bank stays cautious this time as well, the euro won’t have chances to recover.
• Dovish ECB – weak euro;
• Hawkish ECB – strong euro.
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The British yearly CPI will be released at 11:30 MT on January 15
The Bank of Canada (BOC) will release its rate statement alongside the monetary policy report during its meeting on January 22 at 17:00 MT time.
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This week will bring us central bank statements and important economic indicators related to the main currency pairs. Read on to see which ones will be affected.