The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
ECB Press Conference
|Despite the euro area’s robust economic growth, the European Central Bank is still doing the so-called quantitative easing (QE). Without this form of monetary stimulus, the euro would trade higher. The uptrend of the single currency since the start of 2017 was fed by the expectations that the ECB will reduce the QE. The ECB President Mario Draghi will speak about the central bank’s monetary policy at the press conference at 15:30 MT time on March 8. His comments about inflation, economic growth and the QE will have a great impact on the EUR.|
The USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
US stocks and oil slipped as Donald Trump threatened not to sign a long-awaited stimulus bill into law. The market sentiment had been already fragile, and Trump’s comments worsened it even more.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.