The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
The ECB meeting pushes EUR/USD up
The European Central Bank (ECB) conference took place today, September 13. The ECB didn’t change its policy. It was anticipated by investors. There had been worries about an influence of the lower economic forecasts on the EUR.
ECB updated the data concerned GDP growth for the next two years. According to the president of the ECB Mario Draghi’s report, gross domestic product will grow by 2.0% in 2018, 1.9% in 2019 and 1.7% in 2020. The small decrease in expected percent of GDP growth was accompanied by the unchanged forecasts of inflation for 2018, 2019 and 2020. The expected level of inflation for the next three years is 1.7%. Draghi said that it will be consistent. In his opinion, lower growth doesn't always lead to lower inflation.
However, the situation for currency came out better than it was expected.
Analyzing the outcome of the ECB meeting, the fact that Draghi didn’t speak about the emerging market risks brought some joy to EUR/USD buyers.
In addition, CPI of the US revealed today showed lower figures than it was expected (0.2% vs 0.3%). This pushed the USD down and made EUR/USD even more favorable for bulls. As we can see on the daily chart, the pair has been rising reaching the 100-day moving average at 1.1680. This is the resistance level for EUR/USD. If the pair closes above this level, the next resistance will be at 1.1740. The opposite situation will result in uncertainty of the next euro move.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
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