The US inflation will come out today at 15:30 GMT+3. Traders can’t wait to see the numbers as they will impact all the pairs with the USD!
ECB will estimate health of bank credit
Next month, the European Central Bank is on the verge of reassessing the outlook for bank lending next month because there’s a likelihood that EU financial institutions could tighten credit supply and drive the current economic deceleration. That’s what Peter Praet, the bank’s chief economist uncovered.
His remarks will most probably cement market hopes for another round of multi-year ECB loans to financial institutions because existing ones worth approximately 750 billion euros start maturing in 2020, making a cliff-edge for lenders in Italy as well as other southern European nations.
The euro zone's economy has kept slowing, raising questions over ECB plans to have interest rates lifted after next summer.
Praet told that they don’t need to closely watch the transmission of monetary policy via the banking system. He added that in March they’ll come up with an assessment of the current as well as expected state of bank transmission.
In addition to this, Praet told that the ECB's Targeted Long-Term Refinancing Operations had appeared to be an extremely useful thing and they remained part of the major bank’s "toolbox".
By the way, Praet turned out to be the second ECB board member to pay much attention to the prospect of another TLTRO right after the previous week Benoit Coeure told that another round was probable.
In addition to this, the chief economist told that he actually expected the major bank’s estimates to be reduced again in March for the near term. Moreover, he drew attention to some positive things, including soaring employment and consumption.
The expert told that the EU’s key financial institution could push back the timing of its first post-crisis rate lift if required.
The European Central Bank plans to post its monetary policy statement together with the interest rate on June 10, at 14:45 MT time.
US Advance quarterly GDP is announced on April 29 at 15:30 MT time.
The Bank of England will release its statement and announce its monetary policy decision at 14:00 MT.
Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!
The US dollar has surged to levels unseen since April after the Fed's decision back on Wednesday. Gold has reversed up from the local dips. Still, this week was the worst for gold in more than a year.