The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The ECB brings an opportunity to the EUR traders
The European central bank will conduct its press conference on January 24 at 15:30 MT time.
We anticipate the interest rate to remain at the same level of 0%. However, ECB president Mario Draghi, who is known for his unexpected statements, may provide some supportive data for the EUR amid the global uncertainties and the economic instability in Italy and Germany.
• If the European central bank is hawkish, the EUR will rise;
• If the European central bank is dovish, the EUR will fall;
The USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
US stocks and oil slipped as Donald Trump threatened not to sign a long-awaited stimulus bill into law. The market sentiment had been already fragile, and Trump’s comments worsened it even more.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.