This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
How will EUR React to ECB Press-Conference?
What will happen?
On Thursday, September 9, the European Central Bank will host a press conference. It's the primary method the ECB uses to communicate with investors regarding monetary policy. The press conference is about an hour long and has 2 parts - first, a prepared statement is read, then the conference is open to press questions. The questions often lead to unscripted answers that create heavy market volatility.
At the past conference on July 22, ECB did not make any changes in the monetary policy. EUR/JPY grew by 0.5%.
How to trade at ECB Press Conference?
- If the statement and answers are more hawkish than the forecast, the EUR is likely to strengthen against other currencies.
- If the statement and answers are more dovish than expected, the EUR is likely to weaken against other currencies.
Instruments to trade: EUR/USD, EUR/AUD, EUR/CAD
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The US Bureau of Labor Statistics will release its Consumer Price Index and many other critical events that will move the market this week!
Credit Suisse's collapse is in focus. What are the consequences of this problem? Let's discuss it here.
Consumer Price Index, Existing Home Sales, US Fed rate decision - all of these things we will discuss in our new review. Don't miss it out!
The RBA and the Bank of Canada will add volatility to the AUD and the CAD, while USD is expected to be boosted by the Non-farm payrolls.