The US dollar edged higher, while gold dipped down. Let’s discuss main news and market movements in detail.
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.
The market sentiment improved after the USA reported some decreasing in coronavirus hospitalizations. Gold dropped below $2 000 and the US dollar dipped down, while stocks surged. Let’s have a closer look.
The market has started the week with a mixed sentiment…
Follow the report on August 14 at 15:30 MT time!
The market sentiment switched to risk-on. The US dollar is dipping down, while riskier assets are rising, especially the Australian dollar after the positive employment data. All eyes on US unemployment claims.
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