After Trump-Biden debates the market reaction was initially positive, but Trump's refusal to accept election results in case of Biden’s victory deteriorated the overall sentiment.
ECB press conference: live coverage
As expected, the European Central Bank left monetary policy unchanged. The ECB increased GDP growth forecast from 2.3% to 2.4%. At the same time, the regulator pointed out that protectionist policies create negative risks. Inflation is expected to remain subdued this year. Inflation forecast for 2019 was reduced from 1.5% to 1.4%.
At the press conference, the ECB President Mario Draghi the ECB still expects the interest rate to remain at the current level for a long time.
The ECB has removed the sentence “If the outlook becomes less favorable… we stand ready to increase the asset purchase program in terms of side and/or duration” from its statement. According to Draghi, this move of the ECB doesn’t signal any policy changes. Actually, the regulator members didn’t discuss the changes much.
Draghi also claimed that what happened recently is not a trade war yet.
EUR/USD spiked to 1.2445 before sliding to 1.2410.
China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
The market sentiment has switched to risk-on, driving upwards stocks and riskier currencies and weighing on the US dollar.
Non-Farm payrolls will be out on Friday at 15:30 MT time! Are you ready?
US ISM Manufacturing PMI is coming out on Thursday at 17:00 MT time! Be ready!