Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
How the ECB may move the euro?
What will happen?
The European Central Bank plans to post its monetary policy statement together with the interest rate on June 10, at 14:45 MT time. Analysts don’t expect any changes to the interest rate, which is currently held at 0%. What is more important is the reaction of the bank to stabilizing economic conditions and higher inflation. While the ECB projected inflation at 4% this year, the actual rate overshot the forecast. As a result, the bank may revise its predictions. Another thing the ECB may draw our attention to is the possible tapering of the ECB's pandemic emergency purchase program (PEPP). Analysts expect that the bank will try to avoid discussions on this topic as the Eurozone is still far from a recovery.
How to trade on the ECB Interest Rate Decision?
The main thing we recommend you to follow is connected with an extension of the pandemic emergency purchase program. While the statement itself may avoid this question, ECB President Christine Lagarde may provide remarks on this topic during the Press Conference at 15:30 MT time.
- If the ECB is optimistic, the euro will strengthen;
- If the ECB is uncertain or cautious, the euro will go down.
Instruments to trade: EUR/USD, EUR/JPY, EUR/GBP
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
The Eurozone will publish the Indicator of GfK Consumer Confidence on November 25, at 09:00 GMT+2.
The US Bureau of Labor Statistics will announce average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on July 8, at 15:30 MT time.
The Federal Open Market Committee, a committee within the Federal Reserve, will reveal a detailed record of the central bank’s last meeting on July 6 at 21:00 MT.
The Reserve Bank of Australia will announce its cash rate and make a statement about future rate policy on Tuesday, July 5, at 07:30 MT.