The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
The ECB and the euro: surrounded by skeptics
The European Central Bank will publish its monetary policy statement and announce the main refinancing rate on January 23 at 14:45 MT time. Shortly after that, there is the press conference with the ECB president Christine Lagarde at 15:30 MT time.
While we don’t expect the changes to the current interest rate (0%), the statement itself may provide some reasonable opportunities for traders. Experts have already noted that the policymakers of the bank are less experienced now and less dovish than the team managed by Mario Draghi. This fact brings uncertainty to investors and makes the press conference with the new ECB president intriguing for the market as well.
• If the ECB is optimistic, the EUR will rise;
• If the ECB is pessimistic, the EUR will fall.
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
Once in a month, the euro has a very special day of increased volatility at the start of the European trading session.
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.
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!