US Core monthly retails sales will be announced on Friday at 15:30 MT time.
How to trade EUR after the ECB rate statement?
The European Central Bank will publish the main refinancing rate and make a statement on Thursday, June 4, at 14:45 MT time. Also, the ECB press conference will be later at 15:30 MT time.
Instruments to trade: EUR/USD, EUR/CAD, EUR/GBP, EUR/JPY, EUR/NZD, EUR/AUD, EUR/CHF
Analysts give 99% that the main refinancing rate will stay unchanged. Traders should focus on the ECB statement and the press conference. The central bank will reveal the market overview and give its forecast. It’s important what officials think about the future recovery as it will drive EUR. The central bank’s main weakness is a risky nature of its debt. However, the ECB with Merkel and Macron tackled it and unleashed a 750 billion-euro emergency asset-purchase program with 500 billion as grants and the rest as loans. It helped to prevent borrowing costs from going out of control. Economists expect the program to be topped up.
If the ECB leaves everything unchanged or expands quantitative easing, EUR may fall.
If the ECB increases the size of the pandemic emergency purchase program (PEPP) or targeted longer term refinancing operations (LTRO), EUR can rise.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
The Australian jobs data is announced on Thursday at 03:30 MT time.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.