The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Instruments to trade: EUR/USD, EUR/JPY, EUR/GBP
The European Central Bank expanded its Pandemic Emergency Purchase Programme (PEPP) by an additional €500 billion and extended it to 2022 during its meeting in December and left the rate at a record low of 0.0%. The purpose of those actions was to support the EU's struggling economy amid the Covid-19 crisis. Indeed, the resurgence of new cases in Europe has pressed the Eurozone into a double-dip recession. Economic indicators showed that the EU economic activity slightly improved at the start of 2021, but these levels are well below pre-pandemic ones. Besides, Brexit is having an impact too. Since the ECB extended its bond-buying program until 2022, we shouldn’t expect any major changes this year, but who knows!
- If the ECB confirms more easing needed, the EUR will fall.
- If the ECB doesn’t change its attitude, the EUR will rise.
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.